Even if the state law says one thing, often the local officials implement their own rules it seems.Generally in Texas the previous owner needs to request the overage within 30 days.

I have a lot of "guidelines" in real estate investing yet only one unbreakable rule - "don't get into a negative cash flow situation, EVER". 

Nice touch with the Sketchup models, are these just for yourself/construction or did you use them to help create a pitch deck for a partner investor?

 (1,000*12/50% Rule)-80k Mortgage at 4%=~$125/month) and be pulling out whatever the difference is to move on to the next project.One hiccup though is that you live there...so would your next project need to be a place you could live?  

It appears the units are below market, however with some cosmetic repairs and perhaps some capex's I feel I could increase the rent by at minimum (based on local comps) 68%.I would offer 85% of list and estimated $20,000 in repairs/upgrades (this is probably a generous estimate - the property appears to be in good shape, basically needs a face lift).With all these figures, including the 50% rule, financing with 20% down @ 3.5%, I come out to a profit of $262 per unit and a cash-on-cash return of 9.53%.So, does this seems reasonable?

Do you then need an attorney to create a purchase agreement? 

@Arthur LeaoThe Roth IRA likely does not factor into your strategy as you have described it.The Roth IRA is not sufficient to purchase a property outright or with a non-recourse loan.The Roth IRA cannot be combined with personal funds to create a deal, since it is not sufficient to do a deal on it's own.It sounds as if you want access to the income.While an IRA may invest in real property, doing so is a way to diversify the IRA savings, not a way to bring that IRA money into your real estate deals.

I'm trying to be a wholesaler and learn how and where to find or create a pipe with buyers with cash.

As a rule of thumb, your mortgage payments need to be LESS than 50% of rent return, otherwise you're fairly much guaranteeing that you'll be getting negative cash flow!

I am currently a student at the University of North Carolina Wilmington and interested in the buy and hold model to create passive income.