A factor I am frequently discussing with clients is the nature of our current market shifts in Texas.

Is prohibitive zoning intentional as far as economics or more so other factors? 

I guess that's kind of my point, I could easily see loosing 10-15% of my profitability using a management company, so it makes the DST fees more palatable when I factor in how much more time I would get back from passive investing vs. vetting/managing a management company and possibly still being active at times.  

I could partner with someone and probably put close to $100k down but need to factor in $10k for first year expenses into that as well.

Your FICO will also be a factor. 

If that's your plan, I'd just say let the numbers influence the purchase more than emotions. 

I’m simplifying the numbers here to focus on the main concept, so I’m leaving out factors like expenses, improvements, property management, repairs, etc., for now.Here’s the scenario:- I bought my house in 2022 for $1MM and used it as my primary residence.- In 2024 (after 2 years), I moved out and converted it into a rental.

It considers factors relevant to renting, like payment history and outstanding debt, so a low ResidentScore can indicate a higher rental risk even if it’s not a traditional credit score.For declining an application due to a low score, here’s a respectful and straightforward way to word your response:---**Dear [Applicant’s Name],**Thank you for your interest in renting [Property Address].

Those numbers are also factoring in self management.

Try to figure out what works in your market and try it out. the success you will get comes from the actual list stacking you prepare before, the more targeted list with multiple 'distress factors' you can increase the chance of them calling you. inbound leads is truly the best way to go in Wholesaling.