The market does not produce cash flow, it does not have extremely cheap leverage, and it does not have enormous tax advantages.

Invest where you know so you have a home court advantage.

The advantage you have over so many investors that want to invest in DFW is that you live here.

The SBA would be lender that comes to mind first but if the owner is not recognizing the income on his taxes its going to be hard to finance through anyone.I have been running a business like you are describing for the last 20 years and have rented by the month with out having it rezoned.Take advantage of bigger pockets calculators to figure out its value.I have priced my motel at 12 cap rate because its a business.

My wife and I are on to our 4th home together and each on we purchase, rehabbed, lived in a few years, leased it our for a few years and then sold while we could still take advantage of the capital gains tax exemption provided for homes that you live in.

If you are paying for utilities then this might work to your advantage or you can just go a little bigger so they can take comfortable showers.

The biggest advantage you can have is a buyers agent who is experienced with remodel and renting - you will catch 95% of the issues at the showing; the inspection you do after you have an accepted offer is an extra precaution at that point.

Although buying all cash does offer an advantage, you can still find good deals using financing as well! 

Put a LOT of $ into the property and was also able to take advantage of grant $ that came into the neighborhood.

I make about 50k a year, and I have some savings that I want to put a tax advantaged account.