(owner dumping becuase expensive upgrades needed)Is something changing that could affect the value?

No upgrades after the fact.I would only entertain some upgrades after a year if they've been good tenants and are renewing for another year.

The small, or basic, level is the property without any upgrades.

It may not be the case in all localities, but most counties will take an upgrade on the mobile home "eyesore" even if they don't want more mobile homes in their area.

I mean, sure - I hope my property values climb and I can sell off some of my properties to upgrade to bigger/better things.

Here are my parameters:$100k cash to invest into CRE.Monthly cash flow I can allocate to this investment: $3000-$4000Buy power: Excellent credit, and minimal obligations currently (no mortgage as of right now)Targets: Would entertain retail space, medical office space, or multi-family.Willing to: Make upgrades and improvements to the property (family has access to trades/contractors), and I'm willing to self-manage as long as it's in Houston area.Goals: Positive monthly cash flow >$500/month, an investment/location that will appreciate over time, already leased would be a plus.So with the above parameters what would you suggest?

Comments are welcome:Purchase Price: $325,000Units: 29Mix: all one bed/bath (one efficiency)Structure: 2 two-story buildingsCurrent rent: $500Vacancy: 45% (16 vacant units)GOI: $95kNOI: $37k (seller's info)My estimated repairs:Interior (vacant units): $80,000 - mostly cosmetic with new appliances and window A/C units.Exterior: TBD (new balcony railing $8000 + updated electrical (units have gas stove hookups currently), siding repair, and paint, possible dry wood termite treatment)Potential 1 year outlook:Vacancy: 11% (conservative)Rent: $550 ($450 for efficiency)NOI: $169kGOI: $59.7kThe only two pending snags for me on this deal are: cost for termite treatment and cost for electrical upgrading.

Comments from a salty old landlord:1) Your cash flow / ROI is a problem for me, since it doesn't include maintenance, reserves for replacements and upgrades required (if you want to keep it being an "executive" house, or any rentable house at all), allowance for management and vacancy, etc.

As for those who rent, if and when they are ready to buy, they will look to get out of that neighborhood and upgrade.

This may seperating utilities, adding fire rated doors, providing more means of emergencey egress and eletrical load upgrades.