Even the best agent has a slim chance of converting even one of these leads to a paycheck.

You don’t have to skimp on the neighborhood or the quality of the house, but if it is a nice little 3/1 or 3/2 single family home in nice condition with no deferred maintenance, then your chance of making a mistake or getting hurt financially while you learn is limited.

If you ever have to go to court on something like this you will be in the odd position of being both the landlord and the tenant, so I would leave nothing to chance or interpretation.Personally, I agree with Nathan - I'd have real questions about any potential tenants that were OK with this kind of arrangement. 

Despite this, I am still led to believe there's a good chance you are misinterpreting what was written in the book as well. 

During the pandemic zillow was giving more estimates but IMO they were off.

Hello @Kenji Tominaga,Agreed with @Chris Seveney regarding having the owner offer cash for keys.Since there aren't many options on the market that can compare to the deal you have in place, I'd recommend waiting it out (if possible).Chances are, the value of the subject property will continue to increase while you wait for the tenant issue to be resolved.

Just wanted to ask if any investors in the Austin/Cedar Park area with experience in rehabbing with today’s constructions costs had any general tips on estimating rehab costs for a property? 

When the sky appears to be the limit, do not take extraordinary chances.

If I use an FHA loan to buy a BRRRR and house hack let’s say I’m starting with $50K cash and I put 3.5% down let’s estimate $12K including closing costs.

If you see somone with a high level of recent misdemeanor criminal activity their chances of getting a felony is high.