Houston has been incredible in it's resistance to this recession.

I would suggest for you to check your local ordinance, whether a utility is allowed to place a lien on a property.The reason I'm bringing this up is that in Atlanta the water company always holds the homeowner responsible for water bills that are unpaid by a tenant.

You have already been given some sage advise, jump in the water is fine.

No, don't touch that broken water line until I can write out an authorization and fax it to you?

These are the projected numbers, vacancy was less, mx/repairs more.Purch: 125,000Cash to close 30,000GSI 21,600Vacancy 4% (so far zero)GOI 20,700Tax -4,100 (actual)Water/Trash -1000(actual)Common Electric -150Mx/repairs 7%- 1500 (needs to be more like 10%)Insurance -600 (actual)NO 13,350prin/int -6,100Pre tax annual return 7,250 I self manage, I do all the maintenance myself.  

The name of the game is to get filled up fast and stabilize and then sell or refi off 1 to 2 years later.450 X 52 = 23,400 month X 12 = 280,800 gross expected annual income.Back off 50% costs if landlord doesn't pay water or utilities. 280,800 x .50 = 140,400 NOI at a 10 cap for resale that is 1,400,400 before resale expenses.700k + 52 units let's say 10k a door rehab = 500k 700k purchase plus 500k = 1,200,000You would really have to nail down cost per door rehab and the exit cap and lease up rent.

Some have mentioned marketing, but that just doesn't make sense for buy/hold and the amount I buy per year.It's been like this since July-August and the water is getting more still.

I would definitely test the waters BUT...I would do it VERY carefully.

.); costs included in fee (landscape, water, trash, cable, internet, security, etc.); and community maintenance issues.

It's a product of Biggert-Waters.