It seems like there are a lot of people out there, like yourself,  that are sitting on piles of cash to deploy and  that is why investment properties are continuing to command a premium price-hence low inventory.

In my experience with beach houses in FL that larger units command more per night (i.e. a 7/4 can get $800 a night ADR versus $150 per night x3).  

@Edwin LopezI am a real estate agent and investor in the Houston market.Katy, Cypress, Spring, some parts of Houston, Conroe, Tomball, Pearland are great markets.These cities tend to command quality tenants, and they have great schools.Happy to connect and share my experience and knowledge.All the best!

Also, keep in mind that rentals on busy streets, like Whalley Ave, are probably not going to command the same rent amounts as those in residential neighborhoods. 

Chain of command.

That along with "central A/C" may command higher rents

My market can command rents between $1,400-$1,800 a month so in practice I am setting aside $168-$216 for a light renovation or $140-$180 for a heavy renovation.

Our rental market in most areas of the Valley has been very robust with homes renting in just days so depending on your current lease you may be able to command higher rent. 

Either they have been well maintained, and command a high retail price or they are in need of significant repair.  

If it could do better and the seller wants a higher valuation then they should be putting the work in to command the higher valuation.