In that the ability to dramatically raise rents is in deep question through end of year anbd maybe beyond.Just for punching more numbers lets do a rent raise: 1000+1300+1300 x 12 x 0.6 (say only 40% expense ratio since so nice fixed up and turn over guessed to be low) = $26.9kAnd 8% cap (whats cap rate in your area??)   

It is not that difficult if you are diligent.Here are the simple steps to uncover the reality about demand:Start with the apartments in the area.

So spoke with the sellers of the property and they are willing to work with me in regards to numbers since I uncovered the limitations of of the number of units on the property that are allowed.So my current thinking is...Offer $70 - 80k for the property and since we do not have to renovate as many rooms I am estimating rehab being about $150k or less (have a contractor meeting me Thursday to get another quote).

There is something that sounds so nice about being consumer debt free however....

Hi @Kenneth McKeown, Thank you so much for your reply and its so nice to hear the perspective of an investor in the Dallas area. 100% what peaks my interest most in this deal is that is in such a great location.

Use this link to find out what HUD fair market value rent is for your county's housing authority https://www.huduser.gov/portal/datasets/fmr.html.Also, don't lower your standards because based on what I have uncovered in my research, its a huge reason why many have a disfavorable view of the section 8 program.

However, the new ADU laws in California that went into effect Jan 1 2020 may provide a loophole.As I understand the laws, they say that the city cannot use lot coverage to prevent you from building an ADU under certain circumstances, therefore I wonder if I could do the following:STEP #1: Convert two garages into uncovered carports, causing them to be removed from the lot coverage and bringing our lot coverage well below 45%.

The home is in working order, cosmetically not so nice but the mechanics are solid.

You want to uncover why they're selling if you can. 

Wouldn't it be SO NICE to live on Pig Island?