I agree with you completely about good tenants.

And I would have them sign a written statement agreeing that 1) they will comply with all codes, and 2) if there are any fines they will pay the fines plus a fee to you for the trouble. 

I also invest in Dallas from California and agree with what others have said. 

I agree that I don't want to just buy for appreciation!

HOWEVER - hard money lending is super flexible, so the lender can basically write the loan with whatever terms you 2 agree with.If you wanted to defer all payments until after you rehab and sell, I would imagine you're hard money lender is going to want something very different as far as a rate, and possibly a profit share. 

If you and a seller agreed on a $100k price, 20% down with a 30 year mortgage.. what would be the cash price?

"It is understood and agreed that a single violation shall be good cause for termination of the residential lease.

I agree with @Jennifer T. and save it for a 6 months reserve fund.

(Which never stopped any non-attorney investor from chiming in.)But I have heard numerous attorneys debate this issue to death, and I only learned one thing: two attorneys will NEVER agree on liability protection in general and on effectiveness of LLCs in particular.

The only saving grace I have right now, for that plan anyway,  is that I have a friend who is an appraiser in the area and has agreed to look at comps to get a good since of what the ARV will be.