The rent from my roommate and the second unit of the duplex cover my mortgage, insurance, taxes, maintenance, cap ex, vacancies, heat, electric, water, and internet!

It's getting hot and will get hotter, this kind of people can completely transform whole neighbourhoods.I heard in downtown only big shots will be able to buy industrial buildings and convert into residential.

I wanted know from those actively rehabbing in the market if your are seeing it become more difficult to find rehab/renovation deals with the market so hot or are you finding higher profits from bigger ad-on rehabs or pop top type deals vs new builds in the closer in areas of town?

@Jesse Waters I have asked about Blakent loans but didn't get much of a response from the lenders I asked.

I know there's enough space to convert, but I'm interested in understanding the path better.I know I have to (not in order of importance):1) add an additional entrance for 2nd unit2) convert a bedroom into a kitchen plus3) get additional electric/gas service4) submeter water?

I can tell you Austin is a tough play for cash flow, but I can't explain exactly why, other than the market is very hot.  

I don't invest in Houston right now but I hear it's pretty hot (real estate and other wise!)

If you are buying and holding then the nets to work into your analyses would be: (1) mortgage, (2) maintenance fees, (3) property taxes, (4) homeowners insurance, (5) water bill, (6) property manager if you do not intend to manage it yourself, and (7) future property maintenance, suchas roof & painting, and concrete.  

@Mike Hurney,thought about and tried that more than once....under water between 10-15k everytime I had my realtor buddy call in favors to bank appraisors 

A run down car repair shop right next to a shiny new 60 unit apartment complex in a hot area.