I think aside from the expenses others have pointed out, keep a conservative eye on the 11500 for annual maint they presented to you. that number could be significantly higher in future years on an older building. for peace of mind I would say not to calculate offers on less than 50% total expense:income ratio.expensesyrly amtpct of total incomegas36000.020602elec15000.008584taxes300000.17168ins100000.057227maint115000.065811cap ex57500.032905mgmt fee116500.066669landscaping50000.028613acct/legal15000.008584total expenses805000.460674

On the other hand I'm confident I can put together a great package on the right deal in order to present to an investor friend of mine that could fund the purchase and rehab.

That's a 15% return on the deal, or 45% annually.That's the definition of an honest single to me.However, it all depends on if you comped it right, because if you presented the deal to me with the words "zillow comps", all you would hear from me is a click.

Since rents overlap on occasion, and since the applicants are aware of this, I find it easier not to call present landlord.I have no problem receiving calls from landlords as long as they have signed approval, in writing, to give out information. 

It's great to have cash to buy with, always makes things so much easier and faster in addition to almost always getting a better price.Even if you don't "plan" on buying another right away you never know when an opportunity will present itself and in order to be prepared to take advantage of those times they end up in your lap/face, you should be prepared to pull the trigger and execute!

I also like the Katy area, but at the present, it looks like there are many rentals sitting on the market.  

I am not a lender but same as you for being selfemployed lenders will give me a hard time due to the amount of deductions so what I met with a mortgage broker before filling my taxes to get a better idea of how much in deductions should I present.

You can do a  bit of investigation yourself instead of waiting for the realtor to present them to you.  

This home is presented and priced in such a way that only owner-occupants are likely to show interest.There is bound to be houses in the area for HALF that price (yes, needing some work, but not $60k's worth) that would STILL generate close to $1000/m rent - thus getting closer to that sought-after 2%.

If a wholesaler can negotiate the price down to where their 5-10K fee leaves enough meat on the bone for me,  I'll buy it in an instant.Unfortunately the only "wholesale" deals I have been presented so far are FSBO's that they marked up,  or cheap properties they found on the MLS, got under contract, and marked up.Still looking for the right wholesaler to bring me the right deal.