It teaches them bad behavior and ultimately they will get evicted by you or some other landlord in the future.

If it meets the criteria for a good investment at 310K, you are accounting for all expenses correctly, and the property is truly turnkey with no major capex in the foreseeable future then by all means go for it.  

Feel free to reach out if there's anything I can help with in the future.

I understand that I would get penalizes 10%, and I would have to pay tax on the money as extra income, but if I find a real estate investment that has a return of 8-9%, I can have the 10% penalty paid back to me on the first year of owning the property and then I can utilize the future returns right away rather then waiting till I'm 62 with 401K. 

It's hard to see a slow down in the near future with such a large, diverse, and business friendly economy such as Houston's. 

.($6500 deprecations on ¾ of a 225,000) +($2200 in property taxes. utilities and repairs) +($1000 in depreciation of furniture/TV/Appliances) +($2000 in mortgage interest) ($2500 state and local taxes.)That only equals $14,200, it’s hard to justify taking that over the standard deduction of $12,000 especially because I’ll have to pay back my deprecation eventually (I plan to do 1031 probably, but still ill have to pay it in the future).4.

I believe high demand will continue in the future and vacancy will be limited to less than a month (in 5 years of ownership and 4 tenants, turnover vacancy has ranged from overnight, to 1 week).  

I'm approaching this whole project as a big learning opportunity, to develop a skill-set I can use for future projects.I have a lot of fun plans for the garage of this property, which is huge, insulated, and has a bonus room, as well as a good structure for a garage-top deck. 

Contact me privately about the credit issues.Word to the wise for future reference, NEVER fall for the old "you can refinance" trick!!!

Could it end up being problematic in the future if not used, or would the work required to undo it be too significant?