Benson is really booming the past couple years and has really gentrified, but it is close enough to high crime areas that I just hesitate to pull the trigger there (no pun intended).

Your annual return on the $400,000 will be 3.99%.That's a very simplistic calculation that doesn't take into consideration expenses like maintenance/repair, management/leasing fees, insurance, and, oh yeah, property taxes.

Please take into consideration of neighborhood class/property tax/home insurance cost/vacancy rate, they can all affect your decision making process.  

@Will Bert Dont forget to take into consideration water for both buildings and the PLP electric meter into your costs.Also the rental numbers seem a bit low with a 3 bed commanding only $1300 a month.Idk the value of the vacant commercial unit so i cant help you there but where did you come up with the $4500 amount when the other commercial unit you have is getting 3k?

Hi Ben, As long as you are making your numbers work taking in consideration flood inssurance and also the valuation is lower than a non-flood zone one, I will be ok with that.

Again, not an easy decision - I spent almost 10 hours checking every number to gather the confidence but eventually pulled the trigger.

I’ve read that I should put the buildings in a land trust for anonymity and as a way to avoid triggering the due on sale clause.

One more tip – people remember stories that trigger their emotions.

If you live, or do business in, or know people in any of the above mentioned cities, I would love to just get to pick your brains about what these markets are like and to help a newbie investor get his bearings straight for when I finally pull the trigger. 

Another consideration is a cash-out refinance on the property to tap into some of that equity AND generate rental income.