If you refinance that amount (with costs coming out of your pocket or via a higher interest rate), PI at 3.5% for 25 years on $183.5K is $919/mo.PI decreases $24/mo because you've extended the loan by one year but didn't cash out or raise your rate (in this illustration).  

Because every test is $ 400 for me it's a lot of money and I would rather see the state of the infrastructure before the inspector arrives.

@Miguel Toj - I don't know much about Houston, but this sounds like a hard money deal unless you are able to raise private money.At least here in Chicago, a deal switches from residential to commercial when you go over 4 units, so 5+I don't throw out some other keywords about the neighborhood the property is in, so maybe more of your Houston people can chime in.

That also tests your knowledge of the local zoning as well as overlay district restrictions.  2 story additions?

As for rent control if I did a 2 year I could only raise rents 1 time vice the year annually at least though not much each year as a whole.

Those are usually red flags that mean it will be extremely difficult to attract new tenants, sell any homes, and raise rent.

We're definitely testing the waters with this house first.

I was talking to the person I am buying them from and he said he hasn’t raised the rent because he has only done the bare minimum lately but it needs to be raised.

We collected cash flow on the property for a few years and did improvements to the property when the leases turned over so we could raise rents.

Or is there something I can figure to raise cash-flow without sacrificing the big cash-out refi?