At this low down payment the property should still cashflow at least $100 per door per month after the payment, taxes, insurance and accounting for 10% vacancy.

Three of his properties in Orange, TX flooded during Harvey and he only had insurance on one of them.

The cash flow and difference in purchase price make $$$ sense, and all of the maintenance, taxes and insurance will be paid by the seller.

I bet the same concerns about litigation existed when people first proposed credit scores and insurance scores.

This allows us instantly to know that it is not in use by any tenant and can help insure that we swap back to tenant cylinder prior to providing the new tenant keys. 

E&O Insurance/LLC won't be required as it's immediate family.DBA seems to be optional.

Insurance is $100 a month and PMI is another $100.

If you now the rents can support the principal, interest, taxes, and insurance and you can make enough to handle the expenses on the property I would go with a lender. 

Is 0.75 multiply against what is charged for rent for the month or is multiply to the cash flow I get after I subtract all expenses such as insurance, taxes, and paying the existing home mortgage?

A quick glance at housing affordability in AustinMedian Household Income App (Forbes): $73,493 ($6,124/mos)Cost of Living (Forbes): 15% above nat'l avgMedian Home Cost (SFR-ABOR Stats): $302,250Assume 5% Down Payment Conventional Loan- 30 year amortization- $15,112.50 down pmt + any closing costs• Percentage of residents with less than $1,000 saved: 56%• https://www.gobankingrates.com/…/…/americans-savings-state/…- $287,137.50 amt financed- 4.375% interest rateHow the payment looks:PI= $1,433 mosIns= $105 mosTaxes= $458.33 mos (Assume $5,500/yr)HOA= $25 mos$2,021.3/mos PITIDTI’sHousing ratio= app 33% @ median income ($2021/$6124)FHA should be at 31% or less with Conv/VA/FHA being around the same although all have exceptions in placeTotal DTIThese hover between high 30%’s to manually underwritten total DTI’s in the 50’s or higher depending on the programs@ 45% Total DTI Ratio and assuming the above PITI pmt that gives a borrower approximately $734 per month in all other creditor debt (cars/cc/personal loans/etc)These numbers are not perfect but are rather a quick illustration of current housing affordability in Austin for Retail Buyers.Summary: Housing is becoming less and less affordable in the COA for end retail buyersAssuming increases in property taxes/insurance/interest rates on the horizon how does this affect us as investors?