Your initial numbers look quite solid, certainly good enough to merit a couple of days of more intensive due diligence.

In this case the ratio is 1.7%, which is good enough for $850 rent.This would be my more detailed initial evaluation:Price: $50,000Down: $10,000Loan: $40,000 (can be challenging to get a small loan like this)Payment $239.82 (6%, 30 year fixed)Rent: $850Expenses, Capital, vacancy: $425 (50% rule of thumb)NOI: $425Cash flow: $185.18 monthly, $2222.16 annuallyCash on cash return: 22.2% Looks good. 

I'm sure there are great deals out there but I'm not sure if/when I'll find it - and at some point, there will probably be diminishing returns on my efforts.A couple questions to help me understand when I've found something good enough:1. 

If you move to Florida you can definitely make a killing wholesaling if you have good enough marketing.

Start networking consistently and persistently.Now if I were to value one over the other, I would pick finding deals, because I know that if I can find a good enough deal that someone will buy it even if I have to stick an ad in the paper or list it with a realtor.

As Leland mentioned previously, it does seem to be a great place to find investment opportunities if you can find a good enough deal.

If you find a good enough deal, the investor may be willing to give you equity stake in exchange for bringing him the deal.

All title companies in Houston have more or less similar cost structure and if you need to worry about 200/300 bucks here and there and deal isn't good enough to begin with.

heads up for rollzI played full time for 1 year, I wasn't good enough to pull good money and was miserable (fish on a heater 100%) so moved on, my hourly plummeted when I went full time, glad I tried thought.

Though sometimes just the location is good enough.- The premiums for STR insurance are going to be substantially higher than LTR, as you will be covering more liabilities and furnishings, and even more if it's an old structure.- If you are going to be more hands off, you will need a PM to run it, and they will charge a higher percentage in fees than on a LTR.- Be very aware of the politics, laws, permits, taxes, etc. of the area you choose to purchase the property.