I found this article:http://www.texastenant.org/late_fees.htmlIt looks like the late charges must be spelled out in the contract, that the fees must actually reflect what the landlord would actually lose out-of-pocket, and that the grace period is up on the 3rd.I'd assume that would be 12:01 am on day 3.You might like the Nolo Press landlord book for TX.  

That you were able to press charges.

You would be hard pressed to go to court and say "I signed a lease with them for $0 and let them live under those conditions for 11 months but now I want them to back pay me what I really wanted to charge them"I would guess you caught it because renewal is coming up.

I used the Nolo Press California lease in their CA landlord book.  

If the history shows that they've always paid on time, and rarely gave the previous landlord any hassle, I wouldn't even press for the extra $25.

I used the Nolo Press Landlord contracts and forms.  

Agree about Nolo Press.

As an investor it's one thing to take on a risk and understand the possible implications, as a retail buyer I think you'd be hard pressed to make the case to a judge in the event of something going wrong that they were fully aware of the potential for an issue to arise.It sounds like maybe you would be the one holding the wrap and selling on a CFD or option of some sort so you are still in the transaction until the underlying wrap is paid off.

I think you are going to be hard pressed to find A/B class properties that cash flow well.  

i think you'll be hard pressed to find a 20% COCR with a <$200k property that you're doing LTRs on. unless your BRRR it. then your COCR is infinite. so a better question might be, where can you BRRR with <$200k?