But, if you only budget 5% and have a month long vacancy then your Cash Flow takes an unexpected hit.  

In terms of the seller financing, you just need to sell them on minimizing their tax hit in year one if they stand to make a large capital gain on the sale.

put tenant in it and sell to someone who wants cash flow.. that's a rental that is not a retail sell to owner occ location or house.. and if you got hit twice it is a war zone.. or a baby war zone.

But ultimately I'd ensure it all hit one main rental account first. 

Awesome plan, make sure when buying the land that you try and stay out of those flood zones in Houston so you don't get hit by the next Harvey.

@Jennifer Bailey you just hit the nail on the head. 2-4 units can be profitable, but typically you have to self manage them in order to make the numbers work.

Lots of new developments have now been announced in the Phoenix area in 2018, but it's reacting to demand, not speculating that it will come like in the 2000s.Trades people were hit hard in the recession.

I understand I am not hitting the 1% rule on this property, but I am gaining experience as a landlord and so far have had a smooth transition with my inherited tenant.

I grew up there and where I actually bought my first house in 2001 (for$83k and sold for $115k in 2005 before the decline really hit). 

Buy a 2-4 plex, and rent out the other units, or what my Brother did: converted part of his house to an efficiency and AirBnBs it to pay his mortgage.