If you're ok with that kind of return you should be relatively safe and have operating expenses covered with that rental rate assuming you've done the diligence (it seems correct though since I know the spring, tx area somewhat).

It sounds as if he's operating like a short term rental.Also if the units are being rented weekly how on Earth is a tenant several months behind?

Here's a paragraph I sent to the city planning office in regards to the one-STR limit: "I also wish to reinforce a second concern which I heard someone else bring up to you after the meeting, which is that many owners and hosts (myself included) are operating two STR spaces on one lot.

Respond to their letter and learn as much about how they operate as you can.

I am in the process of making my first real estate purchase with my parents and its not a simple one - it is a lot in the town I want to live in with a house on it that's a demo.

Please click on the links, give them a read, and share your thoughts in the comments.First is a post that I feel will help not get overwhelmed with the amount of info that is here on BP:https://www.biggerpockets.com/blogs/5868/52761-the-simple-guide-to-getting-started-on-bpThe second is a post that will help get you focused with your real estate investing goals:https://www.biggerpockets.com/blogs/5868/52743-im-new-to-bp-any-advice-would-be-appriciatedThe last one is a post that will help you choose an “investor friendly” real estate agent.

I'll try to answer a few of your questions, but I am speaking from book knowledge (and evaluating a LOT of deals), not experience from operating them.

At the same time, I won’t stop being me, plain and simple.

This is a great topic, I am currently targeted to complete 10 flips this year, and as a licenses agent, I am also in the process of getting a Contractors License and operation my own crews; huge efficiency and profits here.

@David Ribardo and @Joe C jump in with any edits/comments you might have Purchase Price $149,900 (50K a door rule looks good) Three units total gross/month 2239 (1% rule looks good) Fixed expenses: Taxes 2517, Trash 1125 (375/unit in Allentown unless private collection deal previously arranged) Insurance: 703 Common Electric: 519Water/Sewer: 802Allentown Fee: 225 (75/unit/year) Variable Expenses:  Vacancy: 2239 (One months rent of each place, or 8.3%) Management: 1800 (50/door/month) CapEx/Maintenance: 3000 (1000/door) Total Operating Expenses: $12,930 Total Gross Income: $26,868Net Operating Income: Op Ex - Gross = $13,938 Divide your NOI by the cap rate your looking for and you have your offer price.