By talking more to the police, we found out that the main tenant had a long history of inviting guests in exchange for help around the house and that those relations would always turn tumultuous and that the police visited the house several times each quarter over civil complaints, suspicious activity, noise, drug related activity, and a bunch of other civil nuisance type of calls.

How will the air exchanges happen?

Of course I am partial to KC but help 1031 exchange investors all of them coming into the KC market for the first time and there is a good network here. 

I'm willing to bet if rates went down significantly than getting this property under contract would have had even more competition.

Hi Beth, Your best bet is finding a DSCR based lender that has looser guidelines on STRs.

1031 exchange How did you find this deal and how did you negotiate it?

I bet you can guess what happened next.

Hi Tanjaree, here is what I found for the Waco metro area:Here are my rankings for zip codes in the metro area from best to worst-1.76706 (Waco) 2.76638 (Crawford) 3.76710 (Waco) 4.76630 (Bruceville) 5.76704 (Waco) 6.76640 (Elm Mott) 7.76708 (Waco) 8.76633 (China Spring) 9.76712 (Woodway) 10.76657 (McGregor) 11.76701 (Waco) 12.76691 (West) 13.76705 (Waco) 14.76655 (Lorena) 15.76643 (Hewitt) 16.76707 (Waco) 17.76711 (Waco) 18.76557 (Moody) 19.76682 (Riesel) 20.76524 (Eddy) 21.76624 (Axtell) 22.76664 (Mart) 23.76654 (Leroy)The Waco Metro also rates slightly above average compared to the rest of the state, making it a fairly safe bet as far as Texas goes. 

Over time, a good bet would be to save up enough to find a two-family to house hack with lower money down and move there and rent out this one you own outright which would cash flow nicely. 2-1 single-families can be great for mid-term rentals as well which can 1.4-2.5 your cash flow.

You can leverage HELOCs to buy more properties (I haven't down a down payment since 2015 and between HELOCs, 1031 Exchange, and a partnership, by next week I will have a total of 16 doors with almost no money out of pocket).