Market rate is $1100 on the same street for the same style, size, and age of house.The tenant has been there for 25 years and has also worked as a handyman for the landlord on various properties, so the current owner has asked me to keep him there for at least the next year before raising rents.Property taxes from 2023 are just north of $2000.Based on this Deal Calculator it should cashflow month 1.My questions:1.

Since you know what you need to buy it at and an average rehab cost, I would say $50-70k for a cosmetic flip, set the ARV based on the sample you choose and doing comps and ask them if they would invest in a deal similar to this. 

They should be bale to guide you more based on what you are looking for in the area. 

Being based in Austin, you’re in one of the most dynamic markets out there, which gives you a fantastic foundation to build on!

I just don't want to buy that close to the water due to flooding concerns.  

Allocate equity based on contributions: you provide the $235K HELOC and management, while your former boss contributes renovation expertise and labor.

Please no politics here, just looking for guidance on what may happen based on your insights so I can manage my bsusiness. 

Lenders can have different loan options based on the property type and the amount of rehab (if any) required for the project. 

The BRRRR strategy can also help build your capital base without significant upfront costs.

Primarily desert washes, but also near a creek....So I would go knock on doors and ask neighbors when it has flooded and what they think about the area......maybe call the County water board and ask then what has happened there in the past.