He ran the numbers, we used a calculator to run numbers for rental or flip property, and the math made sense.

Quote from @Jimmy Rojas: Thanks for the reply, i think it may not be worth it after all, may I ask did you use a calculation app to come up with the mostly payments, if so, care to share it with me.One more thing.

BiggerPockets also has a calculator to analyze deals, and I highly recommend you start this as soon as possible, even if you are not ready to buy.

SDE is calculated by taking the net income and then adding back certain expenses, such as the owner’s salary and non-cash expenses like depreciation and amortization.

That being said, anything can happen, but if you run your numbers accordingly, make sure that your contractor is trusted and do all the other stuff you'll be a little more protected than the next person flipping that does not do this type of calculation. 

The voucher program typically determines the amount they’ll pay based on their calculations, and you don’t necessarily need to lower your listed price for utility allowances.

Here's the breakdown of rental income and expense analysis:1.Annual Gross Income: $25,800 (Monthly rent of $2,150 x 12)2.Annual Expenses: $25,800 * 0.40 = $10,3203.Annual NOI: $25,800 - $10,320 = $15,4804.Annual Debt Service: $10,680 (Calculated previously using a mortgage calculator with a loan of $131,775, 7.25% interest, and a 30-year term)5.DSCR: $15,480 / $10,680 = 1.45 (approximately)

View report*This link comes directly from our calculators, based on information input by the member who posted.I’m considering purchasing two investment condos to help pay for my children’s college tuition in 13 to 15 years.

BTW behind Texas.When all forms of taxes are calculated (income, property, and sales tax), CA ranks below the middle of the nation in total tax rate.  

You are best off to raise the rent and give the tenant the option to stay.Also, I hear a lot on here that "rents should be", "the potential rents are"... make sure that you do your due diligence when calculating potential rents because most new owner OVER estimate them.