What do you expect to do with all the leads you gather long term?

If I’m spending almost $150k I’d expect a better Cash on Cash return, at least where I’m at!

They took months to find a tenant and they rented it for much less than we were expecting.

Most lenders will require you have two years work history so keep that in mind or expect to spend a lot of time looking for a lender that will loan to you.

If you are just going to sell it, and expect it to go quickly, no need to refi. 

There is a reasonable chance that you could be required to convert it back to a 2 bedroom, so you would have paid for the extra square footage I would expect to pay for the original square footage and have the price discounted from that for the extra hassle and risk of dealing with the code enforcement officer 

That way you can take that average $200-$400/turnover out of their deposit if it has more than normal wear and tear damage (broken pickets and etc). 

In addition, I expect to have a positive cash flow on this property for $350 per month, giving me a good cash-on-cash return as well on that $20K.

The Austin housing market is so strong, though, that I expect it to barrel through mostly unfazed in the more "affordable" price bands.

I am currently under contract on two properties, one at $50k off of North Ave NW, which as a section 8 rental should bring in around $1000, and the other at $60k, in Thomasville Heights, which is currently rented section 8 at $925, but I expect, will increase closer to $1000.