For one, that would be a gift in excess of $14,000, which exceeds the annual gift limit. 

Texas has a lot of opportunity but be careful when you buy, I hear that you can get in trouble as an investor in the event you buy too high because Texas' appreciate rate is one of the lowest in the country due to the fact that there is so much land there's excess supply and little demand even in today's market!  

Highly leveraged players will get knocked out first, large players with deep pockets will weather the storm and will start to acquire the excess supply.I had a very interesting conversation with a guy who's job it is to crunche numbers for REITs and pension funds - they will go all across the country for a solid 3% ROI.

The only reasonable explanation I can find is they are supplementing with J.O.B. income, or perhaps living off the excess borrowed funds..Some part of their story is missing.

I will put the excess cash in a safe product (CD, Money Market account, etc.), so you don’t risk your funds and can access them when you find your next property. 2.

:I've always had a desire to own investment property, but had always assumed it would be something I could do down the road a decade or so, once the kids were grown more and I had either sold my business or expanded to the point of excess cash-flow and less daily obligations. 

This of course assumes that this property was not acquired in a 1031 exchange.However, any costs incurred to acquire your mortgage (if you have one, which it sounds like you do since you got an appraisal) should be amortized over the term of your mortgage.Also, there are some costs on your closing statement that you may be able to expense immediately.Also, it's possible that you incurred some additional costs that increase your basis in the property post-acquisition or possibly even pre-acquisition.You may also have start-up costs that you may deduct up to $5,000 (assuming you don't have in excess of $50,000 of these costs), the excess being amortized over 180 months.Check with your tax professional.

.$2,000 to make Ready Home (750 sq foot, 1 story home) ________________________________$95.00 - Landscaping / Clean Out Flowerbeds$150 - Exterior Painting$150 - Landscaping / Tree Shrubs$250 - Haul Off (Limbs, Tires, Furniture)$225 - Full House Cleaning (One Story)$495 - Wall and ceiling repairs/Paint Touch up the house from nail holes and scuff marks Seal the joints in the bathroom Walls, trim, and doors touch up Seal above the kitchen cabinetsThis all seems excessively high to me... isnt this $15/hour work with a handyman?

Adequate insurance will be more than sufficient to protect you provided you do not make the mistake or accumulating excess dead equity.

The capias list for Housing Court is always fun to review to see which properties are allegedly (innocent until proven guilty and all) excessively delinquent.