We bought one plat called Rainbow Knowles this way.. it had 120 lots on it and we bought it as a piece of acreage .. now in LA county if lots were created before a certain date 1920 something you cant just bust them back up the way we did even if you have the legal description like the OP is posting about. there is a whole section in the code on Antiquated lots in LA county. 

I've seen plenty of rates in Dallas where the op has to be negative...and could probably operate better as LTR.

In both cases, you cannot entirely discount the other.The property the OP referenced, if properly rehabbed and kept as but and hold will be easy to place a quality tenant   It should have outstanding long term appreciation.poor location can be difficult to place a quality tenant and their are locations (mostly in the Midwest) that have not appreciated enough to keep up with inflation.  

@Tucker Olen @Andre Taylor @Flash Alexander  But didn't the OP state the goal is to build his personal credit? 

@Omar DiazI will be PCSing, and plan on selling and live in Deridder.There are plenty of houses that aren't expensive that could be used for investment purposes, just the matter of what strategy you use.I would target Senior NCOs or Field Grades since JRTC OPS Group has more than their share of them.

OP mentioned he had a plumber check it, and the city will check it.

This is just typical BP, even if unintentional, misinformation.To the OP, what to do with your cash flow is buy more cashflowing assets, if you are able to find them at prices that make sense.  

This is some form of net lease where the tenant pays for their pro-rate share of op-ex, taxes and insurance...However, there's a lot of information missing here.

As I've matured and watched my business evolve to the market, his points make more and more sense.I hate to throw shade but Bigger Pockets is an offender of this too, telling people they should pay for the PRO membership as OP has is questionable, sure its cheaper than a $30k fortune builders mentorship but its just as unnecessary. 

Co-ops were a way to legalize it, but they will be limiting the number of co-op applications accepted each year.