Looking at a duplex listed for $135,000.Duplex is in great shape however needs about $10,000 in upgrades to update it  $1,400 monthly rental income $6,000 annual taxes$1,000 annual Insurnace I’m estimating this is only a fraction over 1% which doesn’t meet the 2% rule.Any thoughts or suggestions are greatly appreciated.  

@Haider AbdullahIt is time to upgrade your understanding and get a professional CPA or attorney on your team to guide you. 

It's hard to buy retail off the shelf with immediate day one cash flow without adding any value, but it can be created in 6-12 months fairly easily simply by making cosmetic upgrades and increasing rents if you buy in an up and coming location.

Make sure you've gotten all maintenance and minor upgrades completed before you take photos.  

GallozaTile kitchen floor use 12”x24” with the half-bond install pattern it’s no more labor and shows like a nicer upgrade.

So essentially, I’m looking at paying a higher mortgage (~2000) for a 2 bedroom condo at 263,000, versus getting a very upgraded 300,000 4 bedroom home for about $100-$150 a month cheaper, in a neighborhood that’s not as cool, and a little further out into the Southeast Austin fields.

This was a win win for myself and a local investor looking to upgrade after this house had a small kitchen fire.

This was a win win for myself and a local investor looking to upgrade after this house had a small kitchen fire.

Plus you may have to upgrade your electric panel for a heat pump .  

The best investments I've made in my life, and the most money I've made on them, has been buying single-family homes to live in and slowly working on them and upgrading them while I was able to enjoy the amenities and then selling when the home had hit peak marketability.