Also - If I verify all my contractors have proper insurance does that negate needing builders risk?

It was under market, so we just gave the tenants proper notice and raised the rent. 

50% rule means your expenses should run about 50% of your income (and it will when you implement the proper operations). $495 x 6 x 12 = $35,640 gross income. subtract 5% vacancy and your effective income is $33,858.

You can be fined and lose credit access for failing to obtain proper authorization before investigating an applicant's credit history.

Make sure the deed and mortgage are recorded properly, any liens discharged.

Houston proper typically averages between 2-2.5% of assessed valuation.  

We do use a property manager for some that are too far right now for us to deal with, but they take almost as much time and effort as the ones that I self-manage, so I'll take those over when I have the time to build the proper systems there and have time to screen the tenants myself.If I found secure investments that could substitute for the income from our rentals without the hassle of dealing with tenants, I would consider it, but it's difficult in this low-rate environment.  

I would not rely on the seller's ability to make the proper repairs and/or their timeline to get it done.When I have used seller financing to purchase a property that's all I have used it for - just to purchase the property.  

Did you leave the correct spacing between the floor and the wall so it could float properly?

Setting up an LLC Agreement properly with the help of an attorney will be a more substantial investment, but well worth it and even if you don't choose the LLC you would be well advised to have an written agreement in another form (partnership or tenant-in-common agreement).