I think your number one goal for your first flip would be to make it a deal which is extremely unlikely to get you into lots of trouble.

You can also build a rehab budget into your loan with a 203K along with the FHA loan if you want, with as low as 3.5% down.

For you first larger multi-family property, I would focus on areas that have proved to have rent stability, overall low capital improvement requirements, and a record of property appreciation over simply going for a property that gives you the largest forecast returns.  

The house is all electric and very high efficiency with LED lighting, low flow toilets, brand new heat pump providing heat and air conditioning.The majority of respondents to my renter profile respond that they don't meet the minimum 600 credit score.

I was stunned by the amount of development between Richmond/Rosenberg and Sugarland, in those low-lying areas along the Brazos River.  

Knowing what I know now, I would not have put such a large downpayment on a low 2.75% interest (15 year fixed) mortgage loan as it tied up good capital that could have been used elsewhere.  

If the deal is small enough and all investors can stay actively involved, you may be able to do a joint venture and keep your costs low.

The unit was a condo conversion from low income housing in an 8 unit brownstone 3 blocks from the projects. 

My specific criteriaSFR 3BR 1.5+ Bath - purchase price less than $125kB or B+ propertyCash-flow positive (minimum 10% net cap rates with at least 1% rental ratio)$15k budget to rehab propertyRent out to family for long-term leasestrong appreciationlow vacancies / supplylow property taxeslow price to income ratiospositive demographics - low unemployment, low crime, high % renters, population growth, etc.Healthy local economylandlord friendly laws

You may also qualify for a larger loan than you otherwise could with your current income since the lender doesn't need to take property tax into account.Here are two challenges I've noticed working with VA buyers this year in the Austin area's extreme seller's market:1.