JD, I agreed on 70,000 with condition that nothing major comes up that need replaced or fix, if so we will put that in consideration.

The building is not currently conditioned.

But generally, I would say you are low on Capex, high on vacancy, and R&M will depend on current condition.  

Not only did I live rent free for 2 years, but I made $100 cashflow per month during that time.

This one was big for me as so many of us have been conditioned that we come last, our family's come first our job comes after that and we might be 3rd place if we are lucky. 

for houston, depending on the section of town and property condition, this is a decent place to start.the value of that quad by income method would be about 395k. 

In those market conditions, DCR and LTV requirements became very strict, appraisers were extremely conservative with valuations, and the capital markets had dried up significantly, so even if you had an amazing property and managed to keep your occupancy high, it was still difficult to refinance.

Any pitfalls or conditions I need to meet to justify it being held for investment? 

The comprehensive home inspection will take place next week, but preliminary accounts say that the home is in excellent condition and will need no repairs. 

It was in good condition when I bought it, so no rehab was necessary.