I know it is in a flood zone for it has flood insurance.The current flood insurance is about $150/month which totals $1800/year.

Some of the tricks I use which are totally legal is the grandfathering NFIP rule or built in compliance.

You were able to acquire 2 buildings with 20% down total?

What I really like about this neighborhood is properties are cheaper but it’s still close enough to western you can pull the same quality/millennial tenants as properties just east of western that cost nearly twice as much. 2br 1ba 1st floor unit: $1300 – Keep as-is2br 1ba 2nd floor unit: $1550 (Will try $1600 first but to be conservative) – Keep as-is3br 2ba duplex unit: $2200 conservative depending how luxurious comps go up to $2500ish – RehabParking: $75x2 = $150 Total rents: $5200Purchase price: $530,000 with a $7500 closing credit + $20-25k for spiral stair case install and remodeling of attic = $542,500 at $5200 = .95% + added equity being a legal 3 with 3br 2ba now.

Feel free to copy anyone else that is totally fine!!

@Seth - Totally hear you on Austin, but I'm finding even Austin is a bit expensive for land, even.

Pay attention to the level of rehab on these properties a comp that sold that was a total dump is not going to be a good indicator.

The "50% rule" states that one can expect expenses on a long term average to total to roughly 50% of fair market rent, where the expenses include property management fees and capital improvements also but exclude principal and interest payments; principal and interest payments come out of the other half of the rent, and whatever remains is the net cash flow (if any remains).

I am sure his security deposit will be used up on junk and trash removal, cleaning, fixing everything he broke.2) Among the things he left behind were a huge nitrous oxide tank in the bedroom closet and six boxes totaling literally thousands of steel cartridges that say "ultra pure" on them. 

First step is to verify the total due on the loan.