Investment Info:Small multi-family (2-4 units) buy & hold investment.

Townhomes and Condos: Steady and StrongThe townhome and condo market also shined brightly:Closed Sales: A total of 1,277 units sold, a 4.5% increase year-over-year.Cash Sales: Over half (52.4%) of these sales were cash transactions, up by 3.6%.

I’ve attached some pictures for reference.Depending on what you are doing with the unit I don't see $40k in costs there.

On some of the units, the bottom layer of flooring had vinyl tile with traces of asbestos and in many of them the mastic had asbestos. 

https://www.har.com/content/department/newsroomHouston Real Estate Highlights in March, 2024:-Single-family home sales declined 7.5 percent year-over-year;-Days on Market (DOM) for single-family homes went from 62 to 55 days;-Total property sales were down 7.0 percent with 8,939 units sold;-Total dollar volume fell 5.6 percent to $3.5 billion;-The single-family median price rose 1.6 percent to $330,000;-The single-family average price rose 1.3 percent to $412,464; -Single-family home months of inventory registered a 3.5-months supply, up from 2.6 months a year earlier;-Townhome/condominium sales continued to decline, falling 6.7 percent, with the median price up 5.1 percent to $235,000 and the average price up 2.2 percent to $276,262.

@Raj Patel are you looking at 1-4 unit properties or 5+ properties? 

What do you pay for property management and how many units?

I have a 3 bedroom, 2 bath unit built in 1975 about 1200 sq feet and just finished remodeling the 2 baths.

Rents are severely undervalued and several potential units are left vacant due to current owners situation.

All units are still filled up.