Like you say though, it really comes down to each city and how strictly they want to enforce whatever rules they have.

And some have a periodic reassessment--for example they reassess every four years or something similar.Bottom line is you have to research the rules no matter where you invest. 

I'm looking for 2-4 unit multifamiles in the Houston area (no greater than 20 miles from central Houston) and getting anywhere near the 2% rule looks like a fairytale. 

Weird rules but every bank and credit union has their own rules/guidelines.

You can only count income for individuals that are applying for the loan.

Please don't perpetuate this erroneous definition.To be a good operator, you provide a safe, clean, sanitary, well-maintained property at affordable rents, AND you screen and only retain tenants who abide by your rules and treat the property and neighbors respectfully.

Apply the 40% rule, which I totally made up myself a few years ago.

In the name of asset protection, their hazard and title insurance no longer apply. 

Just using the "50%" rule, you can expect to continue to pay around $1250 per month on average over the life of the property in those types of expenses. 

However, the numbers are as follows and any input would be greatly appreciated:Asking price-$270,000Unit A Rent-1400Unit B Rent-900 (10+ year renters)PROPERTY APPRAISAL-$260,000THIS DOESNT MEET THE 1% RULE, BUT WOULD WITH UNIT B AT MARKET.THANKS GUYS!