Same property manager staying involved (did $56k last 12 months).  

Of course there are other great areas in the Austin MSA depending on your strategy and risk tolerance.Let me know if I can answer any questions or share my thoughts on any other topics.

Starting small through house hacking, long-term rentals, or flipping helped me gain experience without taking on too much risk.

Risks and ContingenciesWhat happens if I can’t sell or refinance the property within the loan term?

No, because I wouldn't be ready to take that kind of risks.

It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.Make sure your property manager is a licensed real estate brokerage.Understand you can not eliminate all risk, only mitigate it.

Using your first property as collateral could help reduce the cash you need upfront, but it’s essential to weigh the risks and it's not really recommended specially if this will be your first.I recommend focusing on building reserves or seeking partnerships to fund flips.

Risks and rewards to this type of tenant? 

The risk you are describing is really the same risk every investor faces.

it is technically a real thing but very rare, and there is plenty of historical data out there that shows those who have less skin in the game are at a far greater risk of default by a factor of 5-7x.