Quote from @Stacie Telles: Hello all, I inherited a duplex fully paid off.

It is in a perfect location (off the square) in a very popular tourist town outside Austin, Texas. 

Avoid basing it on uncontrollable factors like taxes or insurance.

The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!

Those two things turn some folks off, but if the numbers work, they work. 

Your thesis is basically rent low and accept less desirable tenants so I don't think that is the best thesis to base an investment off.

Hence the lot on which the house resided was taxed at a 45% discount based on actual value, while the tennis lot was taxed at about 4 times what it should have been by value. 

@Sean Overcrest Transferring the property to an LLC may help avoid property tax reassessment under California’s Proposition 13, but it comes with risks.

We now get final insurance and you need to bind it.Once the loan file is complete off to Underwriting you go. 

This is obviously much better than $1,400 per month.On top of that, you will now get 2x the depreciation write-off so your taxes should go down.On top of that, you will now get 2x the appreciation when real estate price go up.On top of that, your tenants are helping you pay down the loan, initially at about $100/mo for both properties, which gradually gets better and better.On top of that, you now have more units so if one or two goes vacant, you have more renters covering the losses of the vacant units.If you want to keep these properties, I would do a cash-out refi and go buy more rental real estate.