Conventional mortgage with 20% down How did you add value to the deal?

if it is a BRRRR you'd pay the seller off when you refinanced into long term debt, either conventional or DSCR.i don't know anything about the location, market, etc. but if it needs a 40K rehab, you need to push the purchase price even lower than 140K, or it will not work as a BRRRR. 

There are a lot more details that go into two VA loans and the downside but transitioning into a conventional loan on the  investment refinance will save you a lot of frustartion down the road.  

Also Texas appears to be saturated with inventory and more being built.

. - Rents are also a function of supply - 2024 saw the most new construction of multifamily units in American history (nearly 575,000 estimated 2024 deliveries of new multifamily inventory), and 2025, while not a record setting year, will see deliveries top 500,000 again - a huge supply increase. 

Since you have work history, if you get a job with salary income and a credit score above 640 (680 realistically), a conventional cashout refi is within reach as soon as you reach those metrics.

My plan is to use a low down payment conventional loan, and with the factors you mentioned, it’ll likely be tough to find a property that breaks even.

I am based in Seattle, but is licensed in Tx.You can acquire your a primary residence from up to 1-4 units for as low as 5% with conventional or 3.5% with FHA with a few exceptions.

I purchased the home with a conventional mortgage and used the grant to help with downpayment and closing costs. 

The overall inventory is higher due to the season.