I also noticed the strong odor in the hallway from the day I first saw the apartment and I think it's coming from his apartment.Best regards,DeboraLet me know what you guys think.

I would very strongly encourage you to consider a 2-4 unit building to start with.

Get a strong foundation going.Check out the Start Here page http://www.biggerpockets.com/starthereCheck out BiggerPockets Ultimate Beginner's Guide - A fantastic free book that walks through many of the key topics of real estate investing.Check out the free BiggerPockets Podcast - A weekly podcast with interviews and a ton of great advice.

I have a strong background both in construction and architecture.

It is a great area that is has a very strong real estate market, but it is very pricey.Is the ultimate goal to keep the place afterwards or are you hoping to hold it for a few years that your son lives in it then sell it for a profit?

Build a strong foundation.Check out the Start Here page http://www.biggerpockets.com/starthereCheck out BiggerPockets Ultimate Beginner's Guide - A fantastic free book that walks through many of the key topics of real estate investing.Check out the free BiggerPockets Podcast - A weekly podcast with interviews and a ton of great advice.

What might be insured is between the insurance carrier and the lender.Considerations are vast, the local economy, the project, management, financials, timing of the project to completion, basically all areas that a lender will consider.As to sub-prime, never heard of it, as coverage is generally afforded to strong borrowers, developers that are entering a project at a higher LTV initially and the LTV is reduced as a project comes to completion, the initial risk.Apartments or properties held long term can be insured but again usually to cover the LTV risk, that is risk enough and to add sub-prime credit, management, or low debt coverage issues really isn't an insurable risk.

One of the best things I feel you can do is to build a strong team (accountant, tax, re attorney, maintenance/handy man, PM etc) to shield you from the daily landlord headaches.

You only need 1 strong partner generally for the loan (especially if they are willing and able to qualify themselves.)

I've been hearing great things about the Texas real estate market since I began investing, so you're definitely in a great area to invest :) We have a strong member base there as well so you shouldn't have a hard time networking!