For the next year, insurance is paying top dollar for rentals, and after that, there's still going to probably be strong demand like before the fire. 

I'd also strongly consider getting a CPA on your team.

Under the 50% rule, $700/month is eaten up if the gross rent is $1,400, and the other $700 will go to the mortgage (I think it's 680 or so), which means net rental cash flow would be nothing...not a very strong case to rent@Daniel Burke Not *100%* decided, but that was our knee jerk reaction.

Jose,I think the El Paso market is very strong.

I also do contract for deed, low closing costs but I strongly suggest you close a CFD at an attorneys office (gives feeling of official and legal,,, which it is).Have a written contract for performance, quartlerly inspections and penalties if no work or poor quality.The summary is:  these rarely work out. 

We been together 20yrs strong. 

Not just what is written, but how things work in….practice.Natalie wrote: “I still think it's blindly optimistic that the IRS would qualify someone owning 1 rental as a business”“Blindly optimistic” …. needlessly strong words that reflect on my credibility…..or yours.

Just food for thought, I'm a relative newbie compared to many experts here so feel free to agree/disagree strongly.

The city is vibrant with good job growth, and there is a strong rental market and short-term airbnb does well there, and lots of smaller multi-families with good bones.

@Anne @Anne Smith California has very strong tenant laws making it difficult to evict tenants.