I have exp in this type of a market this is not my first investment and ive found it to be decent in the investments i have in Los Angeles. purchase price, 100,00025% down say around 4.5% 30yr noteThe two units are already rented  total rent combined $1325 / motenants pay for utilities, landscaping, etcProp tax is 2.5%insurance about 2,500 (its a flood zone so its actually two policies totaling that amount)The inspection came back in decent shape, there is a lifetime transferable foundation work certification, and new 30 year roof put in 2015.... nothing tragic thus far.I'm coming to around a cap rate of near 10% and a return on equity of about 16%Numbers wise, its not a bad deal but heres where I am having reservation and here are some general thoughts on the Houston market I would love feedback from readers esp houston investors/residence1) I dont really see how we will get large price appreciation or any price appreciation really because the areas are kind of low value low income and pricing in houston in generally the last few years grew at a very unsustainable rate.  

Not want to own a rental in the Small city of Garden City and work there, if my tenants found out I was a cop there they may be calling the PD asking for me to come fix a problem.

We get better pricing with vendors such as garbage, bookkeeping and landscaping and we self manage at a reasonable %.

Those seem to usually entail your basic upkeep for a property i.e. clogged toilets, landscaping, snow removal etc.

Taxes are $2,400 water is $1440Insurance $800  Landscaping $175 every two monthsRents for $1600 total Realtor said: willing to offer 2nd mortgage for 25% full balloon in three years.

John Boyer in Palm Beach Gardens, the best with everything RE Let him know I referred you.http://www.johnwboyercpa.com/

We can use 4 acres for the garden at 174,240 sq feet for the garden.

And yes we could have done roof at the same time.We did exterior work, deck repair, landscape cleanup, paint etc during remediation. 

Did they mow the lawn or do their own landscaping?

Also, you're going to have to budget for landscaping as no college kids are going to maintain the yard.