Many of those properties don't actually produce income due to turnovers, vacancy, maintenance and damages and you're lucky if they appreciate enough to keep up with inflation.

I'll keep thinking on these questions! 

Keep learning and determine your long term goals.

They also didn't get hit with capital gains on the entire purchase price, which enables them to keep more of their money. 

i wouldn't cash out your 401K, it's not worth the penalties.the only thing I can say is to keep looking and don't buy just to buy.

I don't know about other areas in TX, but I keep a close eye on Austin-SAN corridor, and I'm familiar with the market in Kyle, New Braunfels and NE San Antonio.

My goal is to buy one rental per year with price between 150k-250k for the next ten years (if i get to keep my job). 

Keep the text from the “reliable” tenant that shows they provided the addresses you sent the letters to. 

Keep learning and running the numbers—you're on the right track!

Just keep in mind the process can take a little longer since you’d need to work with contractors and follow FHA’s requirements.4.Your End Game: Whether you’re planning to stay long-term, rent it out, or sell once the work is done, it’s important to have your exit strategy mapped out.