It's the best way to test what you like and don't like in a low risk environment.Once you've done this, you'll probably have even more saved up and experience to make you more confident in choosing a direction.If you decide to just dive into one of these markets and strategies, I'd recommend focusing on your personality, goals (cash flow first or something else) and how much time you have.

@Paul Martynov Many Texas markets do have high taxes with no apparent end to the amount of annual increase to them.

Plan on renting by room to maximize cash flow.

I've done the numbers and they don't work as a flip nor do they work for someone to buy cash and rent it out.

Your agent represents you and needs to know what's going on, and they can usually glean some extra details from the MLS and/or a phone call to a listing agent prior to making said offer, and advise you accordingly.Furthermore, no listing agent worth their salt is going to tell you, "sure...my buyer will accept an offer of X amount".

@Louis Zameryka - Prices are high, but you can most definitely still find cash flowing deals.  

While the units look to cash flow, for the next 5 years we plan on using that cash flow for any extra expenses over and above what we would forecast for the maintenance, repairs, and capex items for the properties since we already have W2 jobs we plan on keeping for at least the next 5 years. 

I looked at the HUD limits online (quickly skimmed it) but didn't see any county that was close to the amount.

For that much down and with the lower payments a high level cash on cash return should be in the 10-20% range..

I have taken biweekly when my tenants had cash flow issues.