Did they give notice to the prior landlord - - that's the way they will treat you too!

If not you will notice a shift in attitude.Instead we tie good tenant behavior to a discount in rent, movie tickets or something that says "we appreciate that you are a good tenant".

Often in many areas I notice that people can't find good deals or the market is flooded, here it is opposite there are many deals and low cost of living allows for lower upfront cost and risk.

Anyways,  now that I am trying to find another house, I notice that the good deals absolutely FLY off the market.  

I noticed that there are some really large tax appraisal value increases (2015 from 2014) in the Leon valley area.  

Based on my experience, the Fannie Mae DTI ratio limit of 36% is not so restrictive.In your scenario, you are expecting to live off of $5k a month ($60k) a year and that does not take into account things like maintenance, repairs, PM fees, etc that will eat into your passive income.

Since then I've noticed a new construction boom in the neighborhood.

I notice there is a foreclosure site on BiggerPockets.

Im also surprised that you can find a cash out refi where you are getting more than 70% LTV, as that is a Fannie/Freddie mac limit.Maybe a HELOC?

I would suggest starting with a Fannie/Freddie loan to buy a 1-4 unit property.