Houston suburb area (RIchmond) - purchase new or old home?

[Obaid M.]

Hello all, first of all, thank you, thank you and thank you. Over the past few days, I've been reading pages after pages and forum threads on BP and really really appreciate all the expertise, advice and information the community has shared and continues to do so. 

As a starting point, I made up my mind that I want to invest in Houston Suburb of Richmond / Rosenberg residential real estate single family homes, with rents in the $1500 - $1800 range.

Now the question is, should I buy a new home sold by the builder or go for a older home?

I'm trying to find deals, and can't seem to find any - do they just not exist??? 

Example of a new home deal in Richmond, TX that I recently analyzed.

Cost: $209k
Rent: $1800
Expenses: Approx $9155 (insurance, taxes, 5% for vacancies and repairs, HOA Fee)
Management fee: $2160 @ 10% (if I go that route)

The above at 4.5% interest rate, 25 yrs amortization, gives a 4.9% cap rate. 
With management fee included gives a cash on cash return of NEGATIVE -2.8%. (3.1% without the management fee).

The above to me sounds like a horrible investment, yet I see soooo many houses listed for sale and soooo many homes for rent. Which means investors are buying and seeking renters. 

1) As a starter, should I buy a new home sold by the builder or go for a older home?
2) Am I missing something? Is this just the houston market? 
3) Should I negotiate more with the builder? I was hoping atleast I'd get a 10% Cash on Cash (better than the 8% stock market would give).
4) Should I look at commercial deals instead? I've come across one that is 10% CAP rate, but its B class and one of the major leases expires in less than 12 months.

Thank you for reading my lengthy post. I'm trying to make sure by my next move is not a mistake.