I'm on house number 4 that I've lived in and renovated, so I agree that's a good strategy (I've done it just through life, not actually a purposeful strategy). 

On a positive, the rental demand and production in this are is some of the highest in the country. 

Once it's placed into services as a rental, the property taxes will be a rental expense.I agree with Gregory above and speak with the company he has his mortgage with.

You would then stress to not incur any improvement cost above $22,000 or you may have to liquidate the property.In this scenariod, $60,000 if you are making an above return at 10% to 12% annually + $30,000 making $4% in a HYSA, the average return is maybe around 8%The blended return would be about 9%You may be better off investing in the stock market, get a slightly lower return but without all the added stress / work.I have to agree, I forgot about the 65% LTV with SDIRA mortgages.  

That will put you above 90% of the country’s wholesalers.

Depending on the country there also might be fire risk mitigations.

@Shawn Questa I agree with you that there could be some opportunity here, but personally, with that little equity in the property, I'd wait for the pre-foreclosure process to start and  perhaps you can do a short sale (though I don't know the details on how that's handled in TX).

This is the richest country in the history of the world and there are opportunities everywhere.

If I had a good tenant and they continue to be a good tenant, I don't care where they legally get their money from.I agree that most S8 do not meet my criteria even without considering the source of the income.However, we have another policy that also works against S8.  

But I agree totally that it is an incredibly powerful vehicle to build wealth without having to put very much money down.