I have a duplex that I purchased with 100k Personal lines of credit (great rates) BRRRR method. 

Long-term, my focus will be the greater Huntsville area (wife eventually wants to settle in Northern AL), so I have enjoyed both books by David Greene, Long-Distance Real Estate Investment, and the BRRRR method.

The downside would come if you are not getting good enough deals to justify the BRRR method and you would then grow much more slowly than starting off with a portfolio rehab loan from the beginning.  

Due diligence:  I would find out what the lender's underwriting parameters and due diligence procedures are and if you agree with them make sure you have a method in place to insure they comply with those methods. 

@David Rom  The BRRR method in Ft.

@Rachel H. thanks for the reply its zone for Residential Uses (R-2) ie: Manufactured Home, Multifamily Dwelling, Two-Family Dwelling (Duplex) and etc. but NOT for Manufactured Home Park. but a Manufactured home park: A parcel of land at least five (5) acres in size on which a minimum of ten(10) developed stands are in existence for lease or condominium ownership and two (2) mobile ormanufactured homes are occupied as separate residences.

I have been doing "what I believe" is finding out the comps in the neighborhood using an avg. sq ft method.

Originally posted by @Julio R Gonzalez:Originally posted by @Adam D Rinehart:@Alf Holst unfortunately the A and B class neighborhoods in the Houston area either don’t rent out at 1% or don’t cash flow using the 1% rule, primarily due to our high property taxes.

Also research fraudulent renters and the methods that they use. 

@Phillip Moreno @Kristin R.