What we and others have seen happening is the sellers encounter the IRS over one or more issues, often the 8300 reporting rules which they enforce, and they examine for the presence of other compliance issues.

Texas has always had a strong market so we're lucky to already live here! 

,I know I need to file taxes, do the bookkeeping, screen tenants, have strong leases, insurance, and know a bit more that the average dame when it comes to structural issues and maintenance since my parents were builders.  

Would depend on your liquidity and net worth for total picture and strategy.If it's a small town has the population growth been strong the last 5 years?

I'm also strongly considering getting a real-estate license.I found BP while browsing for info on getting into real-estate investment, and it seems like a great community and a great place to learn!

If my burning desire is strong enough, my lack of the "appropriate degree" is a non-issue to follow my passion.Btw, you're in a better situation that most people who do not know what they want in life!

I'm hoping to network and build a strong buyers list.  

@Sean Gallagher, @Jim Costa makes a strong case for the use of 1031 exchanges as a tool to build wealth.  

Hey guys, I'm in the process of getting pre-approved for a mortgage and I'm strongly considering purchasing my first rental property in the Palmdale/Lancaster area...

Other reasons are that FHA usually allows a higher debt-to-income ratio than Conventional, allows a lower credit score, and can have some more flexible underwriting guidelines.It's always best to find an experienced loan officer with a strong product arsenal to help you fit into the best product, and educate you so that YOU can make the right decision.