The good thing about Texas is that the state does not have a state income tax.The only potential filing oblgation that you can have with Texas is if you have an LLC and therefore required to file a franchise tax obligation.

There was no financing required, since we were assigning the deal to a buyer.

I would contact different contractors online in the area and talk to them about your questions and concerns.

Even though it's one loan (and if you use FHA financing a low interest loan at that) FHA parameters view it as you owning two properties - one your primary and one an investment property.When you sell, if you have met the residency requirements of the primary side you will get that gain tax free up to the 250/500K limits. 

Here are some key points to consider:Accessibility: Residential properties are often more accessible to individual investors, especially those starting out with smaller capital.Tenant Stability: While turnover can occur, residential leases tend to have shorter terms, offering more flexibility if you want to adjust rents or change tenants.Market Liquidity: Generally, residential properties are easier to buy and sell due to higher demand from individual homebuyers and investors alike.Emotional Appeal: Homes and apartments can have a strong emotional appeal to buyers and renters, which can influence demand and pricing stability.Purchasing: Residential real estate will require a down payment of at least 10% of the purchase price. 

It's perfectly understandable you wouldn't know the licensing requirements - especially in the context of coming out of an unlicensed shop. 

If you hold out a section of the home strictly for personal use that part will not count towards your 1031 reinvestment requirements. 

@Mike Liu there's always a tradeoff between risk & reward.If you want higher cashflow, you'll need to get into riskier investments.STRs are riskier than LTR due to: saturation, changing local government regulations, more intense time required, etc..Regarding LTR higher cashflow:If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.So, when investing in areas they don’t really know, investors should research the different property Class submarkets.

Having a license doesn't bestow magically knowledge on yourself.Most brokerages require that you complete a certain number of transactions under the guidance of other agents for a reason. 

Managing the $40,000 renovation budget required careful oversight to ensure timely completion.