Any assumptions about standard or quality of construction (materials), the parking or other details that would not impact the square footage and style (brick, wood, steel frame, etc)?

With a low down payment, I worry about bigger picture impacts down the road, particularly when it comes to getting access to equity for the sake of scaling my portfolio.

There should be remediation procedures recommended in there by the environmental who completed the report. 

Regardless if your in Houston or pretty much anywhere a bad foundation is going to negatively impact the value when you are ready to cash out in whatever exit strategy you decide on. 

You don’t want these inspections done with the intention of saving you money on ignored deferred maintenance turning into little nickel and dime maintenance issues that seriously impact your bottom line. 

I would also venture that their credit is so good that the foreclosure hit has minimal impact.

The nominal impact to your premium cost is much less than the administrative cost of a whole other LLC.

Learn how to use it in a way that diminishes the cost impact.  

For example, a steep access or driveway -- or even a winding drive up a mountain --  will hurt rentals from late-Nov thru early March as snow/ice will impact access. 

Cap rates are impacted by more than just interest rates...try demand, credit availability, etc (see link below).