Since the studio apartment is now an income generating asset...any expenses associated with the studio apartment are deductible.

I think these details definitely cement the viability of a fix-and-flip product - given your history / plan for the project, it could look like a 10% down situation if that's reasonable for you financially.

Will the asset support the agreed upon payment?

Even at $300, you're still cashflowing a tiny bit more than pre-refi on the first property....plus you've got another appreciating asset.

If you're financially in a position to get a property in NY. 

Here's a case study that would be dismissed based on your criterion:-Asset: Mix Use 11 Unit Building-Contract Price: $1.73M-Existing Rent Roll $15,800*Currently 1 vacant commercial space market rent $5,500 & 9 apartments all leased below market value (60 day termination provisions for each residential lease). -$650,000 Renovation Budget-Stabilized Rent Roll $25,400-"As Complete and Stabilized Value": $3.45MThat's a recent MLS deal in a B+ Philadelphia location with a credit tenant that's been there for 20 years in the occupied commercial space.

Hi Jonathan,Yes , they advised it was all to protect the assets . 

I am looking forward to knowing more here and buy my first asset ! 

To a Californian, these would be "cheap" but not the cheapest of them all in houston so not as attractive on paper but in my view way more of a justifiable asset to invest in than the hood.

This is actually better than many parts of town, but that's partially due to the quality of the assets there.