Just something to chew on before you automatically dismiss MLS properties because you feel too many eyes are already on the opportunity. 

That being said, there are some issues that a HI does catch that can and will pose a problem for the buyer and for that, it works.

Purchase was $188k and has been depreciated for 12 years to date.The online Capital Gains calculators show an outright sale losing over 30% to capital gains, depreciation recapture and the 3.8% Medicare tax (an extra stick in the eye).

Your current home becomes a rental once you've moved out, and even if you aren't cash flow positive in year 1 (new rents - debt on new primary - current mortgage pmt), focus on aggressively saving towards a $10-20k cash reserve & have faith that market rents will rise over time to catch up to today's affordability crunch.or 2) Save up a full down payment on an investment property.

I like the idea that I can keep an eye on the property closer, use local contractors that I know well, and in a market that I also know very well.

The homeowner will probably get tons of calls before the actual sale date giving him an opportunity to catch it early.

Look into what's up now in the Houston market, eyeing things like property prices, how many properties are for sale, how much people want them, and what the economy might do next.

Just because a house is currently occupied doesn't make it livable in the eyes of your financier.

Example: Pref of 8%, catch up 2%, then split 20/80 till 15%, then 30/70 after.

The law moves slowly but it will catch up to this sort of conduct.