This total is about 25%, so your 10% security margin seems low.At 5% down you would want a fairly healthy reserve fund for unexpected high cost maintenance or vacancies as you have very little equity available.As it is, you're catching a falling knife in Grand Prairie and it is certainly conceivable that property prices and rents could fall a further 5%+ over the next 12 months, putting you in negative equity and cash flow territory. 

Selling might be tough, building and renting seems like a fair idea, you need nice insulation though.

I'm sure Texas is landlord friendly but fair housing isn't something to take lightly.

I don't have a lot of first-hand experience in RE but have done a fair bit of reading and did heavy research before buying my condo and have been studying the market closely over the past few years in hopes of trading up.

What's a fair return we should pay him or what's fair for him to charge?

(Yes, silly Banks, but can you see where they are coming from, when EVERYONE will tell them that THEIR newly acquired property just happened to be the bargain of the century, so please lend the FULL purchase price, even though it is the only thing that can be put up as security)?

Just like fair market tenants you have to screen, screen, screen.

I attend a fair number of REIA meetings.

We are building our buy and hold inventory here and have found it to be a fairly good model, and my partner and I are using our current skill set as a construction company to build in equity through new construction.

I am a fairly new investor with a few SFHs under my belt.