The rental income from the first home will pay for the mortgage/monthly costs.  

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

For context when we do this our biweekly payments have been around $485 per paycheck so around $1,000 per month of lost income per person when we both do it. 

In Texas, there’s no state income tax on rental income, but LLCs have formation and annual fees.This post does not create a CPA-Client relationship.

You spend a lot of time and money having people do this work, and at the end of the day you don't net any more income compared to a long term rental.

Typically 75% of rental income can be applied towards your DTI for qualification. 

We are not focused on the passive income at this time as both working W2.Questions:1.

My goal is to have passive income!

Many, but not ALL are only focused on the commissions he/ she will earn and not focused, on your best interests.

At this time the primary goal is passive income and then scale within 5 years as I gain more experience and network.