The reason CAP rates are popular is because it removes the financing variable and allows investors to analyze deals on an equal playing field.

LVT all throughout rentals is very popular in the lower 48. 

Again, my post is for discussion purposes only - I figured providing a real life example of how the new construction model can work, but also the risk associated with it at this time, might help some OOS make whatever choice is best for them.

You got two choices one is to start lending or the other one is to pay a monthly/yearly fees to get educated about real estate for your first year or two.

Hi Pretty,There is absolutely no way to know ahead of time if you will recover the cost 100% or even 1%.The choice might come down to how much you and your wife want to have this very desirable bathroom vs the one that is in there now.Getting your money back on it in a new-ish suburban home is just unknown upfront--I'd say this purchase is more of "Personal Desire" purchase than a hard nosed business purchase.Although it could turn out at sales time to being some added sale price...

If I want to scale my portfolio, traditional 20% down mortgages aren't going to be possible because of the property value here, so wanted to see what other popular methods are possible.2) How can a rookie investor get comfortable with buying out-of-state? 

There is good and bad with every situation, dealer's choice though.

Either one is a good choice although my personal choice would be anywhere in Texas; not limited to just Houston. 

You won't come close to that closer in or in a more popular area.

The area is very popular.