First, that investor telling you of a minimum IRR doesn't have a clue, IRR is rather irrelevant especially to predict, no one really knows what the IRR will be until the future.If you're going to look at the IRR, that 5K isn't your total investment, it's an additional 5K you put in to restructure your financing. 

Zillow's prediction was right, Dallas has been a big gainer.Case-Schiller: Dallas home prices at all-time highhttp://www.dallasnews.com/business/homes/2016/10/2...

Its more predictable that "cash flow" which can be wiped out with one unexpected capital expenditure.

The area is good and values are predicted to rise. 

One out of every five flood claims is from a low risk area, and the models are only going to get worse and worse at predicting the real risk.

Your financials are too tight to not have predictable cash flows on this property.You also could lose the home sale exclusion if you convert your former residence to a rental.  

Predicted cash flow is sometimes not realized, about half, or worse break even.  

It cost a lot less than predicted and only took about a day.Regards,Allen Fletcher

Planning Ahead.The majority of Americans do not have “rainy day” funds set aside for unanticipated financial emergencies and similarly do not plan for predictable life events, such as their children’s college education or their own retirement.3.

Many forecasters predict a shift to more CA normal market barring some international crisis that is.