I'm guessing his description of "clean, not luxurious" means there will be some deferred maintenance and updating needed.What do you look for per door for net income?

Just to update:  We offered to screen the prospective tenants & sign a new lease if they passed screening.

It's legal for regular business, but I have a feeling it is violating some type of antidiscrimination laws for HUD with respect to renting.

Be aware that commercial loans operate differently than regular Fannie Mae/Freddie Mac loans as the rates are higher and terms less favorable such as a 20 year amortization and 5 year balloon for example instead of a straight 30 year amortization loan.

@Ted DavisYour wife may be entitled to the home office deduction if she uses the area regularly and exclusively for her business.Items that go into the deduction are rent(depreciation, mortgage interest, home insurance, real estate taxes if you own), utilities, etc to calculate the home office deduction.It can be a big deduction so many sure your accountant factors that in.

The others are much nicer than others I've looked at.So, here's my updated numbers. 

I haven’t seen any activity in this house for a longtime and I can see it needs updates for sure but it looks mostly just out dated.

We are close to Sea World and Lackland so I feel we will stay rented regularly.

There's over 60k in updates invested in the last 4months. 

Each fluctuates regularly so it's really just about maintaining that balance between the three as best as you can.