The place is near one of the biggest hospitals in the area and there are a lot of young and mobile professionals who want to rent there.

I got my start doing that and one of my biggest mistakes being a rookie was overpaying.

That's the biggest event of the year in Austin.Would love to know how your numbers shake out for the year.

A whole industry makes its living on the "your house is your biggest investment" and "a home is a good investment" myths.

. :)But the biggest advantage is that you now have three units to cashflow to save for the next unit, you do not need to save so much because you are buing at 40k instead of 50k, and your equity is growing faster.

LOL  That being said, I think my biggest due diligence will be digging into who they are renting to and what areas they are in, probably pay for my own neighborhood assessment or use my RealtyTrac account to validate everything else. 

For me, one of the biggest things to figure out is what exactly I want the trust to do.

Some keep great records and others not so much.Looking at schedule E tax returns give insight into the numbers.When you inquire on a property and the seller says I haven't been keeping the records up the last year or I filed an extension those should be immediate red flags.My biggest pet peeve is words in listings like POTENTIAL,PRO-FORMA,POSSIBLE returns etc.

Granted, in REI, liquidity is your biggest enemy as it relates to getting out from under this one. 

Honestly, you're biggest problem is not necessarily going to be accidentally buying in a bad area, but more finding deals that make sense in the North Dallas area as a buy and hold.