I also determined the CAP Rates and Cash on Cash return was minimal- 5% or less on most deals.

Im a newby, but it seems quite difficult to find the 1% property in the city of Houston without having todo major repairs (I dont have those connections yet).

@Ray Li Finding a SFR that meets the 1% rule is going to be very difficult in today's hot market here.

The asking price would amount to a cap rate of ~4.4%.

Is it no land to build new homes, rising interest rates making it difficult to buy or build, some new attraction/business that pops up nearby?

I went to get pre-approved for loans, and find out its a little more difficult to get a 30yr conventional on an investment, and nowhere near prime. 

If it’s leveraged at a normal amount of 20 or 25 percent equity, I would say this is fairly difficult to do long term.

I can't figure out why they have anything about mortgages in their cap rate calc, I thought cap rate was on a cash deal, where you got it was your business.

Here is specifically why it’s important, and the deal may not appraise...http://forum.mobilehomeuniversity.com/t/poh-and-appraisals/12359Instead of capping the home rent into the purchase price instead value each home as an individual purchase on top of the purchase price for the capped value using lot rent.  

Is there anything specific with the laws or the area in general that makes owning rental property more difficult than normal?