However, it's an awesome rental market with good job growth and other positive macro factors.

At a young age that would give you 3 times the growth that one paid for property would.

Demand for low priced rentals has sky rocketed but growth in rent rates is capped because people can't afford to pay more because they aren't making more.

What areas seem slated for gentrification, or at least foreseeable growth?

As far as the deal you have, Depends on what the neighborhood and possibility of appreciation and rent growth.

What do you think has spurred the growth in value in the 77083 area without growth in rents?

That is not to say it doesn't have its pockets of growth, just make sure to research your area.

Didn't Ronnie Reagan triple debt by using the growth of gov spending?

Why do I need to wait for the perfect property if I am making a bet on the long-term growth of an area?

The way I see it we have the following options:1.Buy another SFH, Duplex, Triplex, or Quad using our own cash and a LLC Bank Loan - $20yr amort, 5 year term 6.5% rate a.Least amount of risk b.Less complicated c.Slowest growth – takes more of our own cash, and restricts the size of the building/investment2.Use debt financing at 8% in addition to our own cash to purchase a larger building using a combination of the above plus our LOC at 8%.