Sounds like you’ve put a lot of thought into this—great job running the numbers!

Nice Job! 

@Ricardo GonzalezMoving to Houston for your first rental is a great strategy, especially with its strong job market and cash-flow potential.

I’ve been interested in real estate for years and have invested as an LP in several projects, ranging from residential single-family homes to NNN properties and flipping.While I haven’t owned any property yet, I’m hoping to take that step in the near future.

Use your W-2 income to qualify for multiple loans now, stack a few properties before quitting your job, and consider BRRRR or DSCR loans later to scale.

Same for 2-years of job/income stability.Tenant Default: 10-20% probability of eviction or early lease termination.Section 8: Class C rents usually meet program requirements, proper screening still recommended.Vacancies: 10-20%, depending on market conditions and tenant screening.Cashflow vs Appreciation: Should cashflow immediately, at the lower end of relative rent & value appreciation.Class D Properties:Tenant Pool: Majority of FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, but should have no convictions/evictions in last 12 months.

I agree on the supply constraints and job growth. 

@Andrew Self lack of two years of employment history is not a deal breaker depending on what you were doing prior to starting your salary job.

The home is 2800 Sqft and hoping to sell around $800k price range once complete. 

These folks have higher paying jobs and many only need a rental for a year or two.