This was something I was intrigued about and the post jumped back to the top of the list when you asked yours. 

Based on my experience of running properties, even if the build were to cost you as much as $600k but you could generate $125k/year, you'd be very happy with that investment. 

As both an investor and a mortgage broker who has personally used both options, I can say there are benefits to each.It ultimately comes down to comparing the two side by side based on your specific situation.

In Texas we do not have real estate sales taxes but property taxes are high and also included in the proforma based on the 90 day holding period.4.

I would say if you do jump in without physically going to the area...you should definitely buy in a nicer neighborhood (I hear too many stories with new investors getting burned investing in bad neighborhoods). 

Another thing is not to rush I was in a rush to jump into RE but I'm glad I did it's all a learning process on what not to do for next one. 

Should I just jump into it and try to invest in my first property with not much experience besides the many investing books I've read?

Hey Tod, I took a very brief look at your first listing, airbnb.com/h/newport1bedroom, and the thing that jumps out at me as far as improving it is: address the 1-star review head on without attacking the reviewer.

So when you need to go check on things, rent units, meet contractors, etc, you're jumping in the car for 6 hours, spending 1hr there, and I'm thinking after a full days's work. 

Hi Chris, there are several options you could consider, but it would all be based on your risk tolerance.