Both of these challenges can often be minimized with the right team and guidance from an experienced investor.As @Jay Hinrichs mentioned, appreciation is the main driver of wealth in real estate.

Starting rent-free is a smart move—it’ll maximize cash flow but high purchase price and a low down payment make it challenging.

Texas - Cash out loans of any type are pretty challenging here in Texas.

The appraised value seems low and I am trying to understand the best strategy to challenge this value and the cost / benefit of going through the condemnation process. 

A challenge that may arise, depending on the other tenant leases, is that they are all paying above market rates and will see the new rate being marketed and will want a discount at renewal.

Let it roll off and move forward with purpose.Now, Here’s Some Logical Advice:Wholesaling is straightforward, and competition won’t be an issue if you do it the right way.If you’re cold calling, sending mailers, and doing what everyone else is doing, then yes—you’ll face challenges.

Investors are almost always the biggest challenge for any group, new or seasoned, but especially newer investors.  

Challenges?

It also discusses the market's challenges in finding cash-flowing single-family homes under $350K.

Challenges?