If you're planning to use an FHA loan or another owner-occupant loan, there are typically rules about tenant occupancy.

@Ash Gowda - typically a 1.3-1.35 dscr.  5/7/10 (all dependent upon the lease term and re-ups); Rates fluctuate but for now from low to high 6's fixed.

@Elisha JohnstonFrom my experience, San Antonio is a great market for cash flow, with entry-level homes typically ranging from $200K to $250K and steady appreciation around 3-5% annually.

Typical retail lots sold on the market for $55-60k a piece, an off market lot from a wholesaler usually come in around $45k a piece.

I have found it is better to use a Broker if possible so they can shop companies, and shop every year vs using a captive agent that can typically only sell their company policies.While it is good to shop, not always good to go with the lowest possible provider on insurance. 

Typically in commercial leases there is a non-compete clause.

But this also typically requires existing relationship before they will start bending their "standard" underwriting rules.

I'm only guessing but based on what some of the local project managers were saying is that a typical family of four that was paying for a three bedroom cabin decided they could get by with a one or two bedroom with a loft or a pullout sofa so the demand from the larger ones went up. 

Typically  issues are raised when the exterior is not kept up with / parking on grass / garbage in neighborhoods where everyone takes pretty good care of their homes.If you keep it clean and run a tight ship, you should be okay most of the time.

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.