My last purchase between the Palm Springs / Joshua Tree area was for $800k and $120k remodel and furnishing, will do $220k a year gross rents (I was hoping for more like $300k but the market has changed bigtime, like many).These larger properties have more overhead, I would encourage you to set your sights higher, especially in this market environment of diminishing prices and lower occupancy.Sounds like you have properties that cost $630k purchase (plus some upgrades, furnishings, furniture, etc, expenses) that gross $8k a month. 

I thought I was going to be able to turn the properties around enough for a bank to approve another loan however with todays lending environment that was not the case. 

The best pricing on these DSCR rental products are at 1.1X and higher up to 1.3X but in today's environment where the rates on these products are in the upper 7-9's even getting 1.00X is tough in pricier markets.What I've found is that in west cost or more expensive markets the ratio is much lower and the borrowers have had to bring in more equity/down payment, or reduce their loan amounts/LTV's.

We are in a low inventory environment, so you have to take your time.

They kept giving me the run around about how they are on hard time due to Covid and Texas is not a good work environment.

I'd certainly have strong cash reserves in this high interest rate environment. 

Not only due to the low CAPs but the insane political environment and uber-tenant-friendly rental laws. 

Renting by the room (if it makes sense for your family) can be a powerful strategy starting out, especially in a high price - high interest rate environment. 

Tenants have a right to a comfortable environment and their comfort level might not always match yours. 

My advice is to be cautious, particularly in this high interest rate environment.