To get positive cash flow and even close to $100, I have to really make a low ball offer, low enough to have seller might throw something to my face. =)  but... i'll try...

I guess I was looking for reassurance that strategically increasing value through renovations is in fact the way to go.Now once I get to the position where its time to talk refi, when you say "a lender," would this be the lender I already have the home loan through, or is that someone I can shop around for? 

I always view things from a liability exposure position when I consider things like this regarding my tenants. 

If positive you could redeploy that capital into another asset.

and will reply to your offer letter by either calling you or signing the actual offer and returning it back to you ready to move forward.That's how I find the "motivated sellers" ready to deal.Then, once I received hundreds of these offers back, I then examine the property specifics and work out the numbers to see if the deal is good or not based on the numbers.Also, your offer letter will state exactly how much you're willing to offer to the owner so you are already in a position to make money should they respond...and some of them will. 

Figure out what route you want to do for sure but if you intent to house hack you will want good credit for lending and the more money you have saved the better position you will put yourself in.

I have some confidence now and am looking to quit my job since I have replaced my salary with the rent.

Congratulations on being in a position to be able to leave your job to dedicate yourself full time to REI.

Rehabbing and flipping seems that it would better suit my current position, but ultimately I would love to own/rent to produce steady streams of income.

Houston is the 4th largest city in the nation with 2.3 million people with projected positive job growth.