I have run the numbers via Rental Property Calculator on BP and here they are:Purchase Price: $460,000.00Monthly Income:$4,200.00Monthly Expenses:$3,593.20Monthly Cashflow:$606.80Pro Forma Cap Rate:5.93%NOI:$27,952.00Total Cash Needed:$126,000.00Cash on Cash ROI:5.78%Purchase Cap Rate:6.08%Total Monthly operating expenses:Vacancy:$294.00Repairs:$210.00Water:$100.00Sewage:$100.00Insurance:$150.00P&I:$1,722.53Property Taxes:$916.67Misc:$100.00Please let me know if I am crazy to do this deal. 

@Simon Cox Looks like you have thought of all operating expenses.

Year1 Gross income $ 24,000 less vacancy $ 1,200 Total Operating income $ 22,800   Prop Taxes $ 4,237 Insurance $ 2,145 HOA $ 1,128 Maintanance (from gross income) $ 1,200 prop management $ 2,387 Total Operating Expenses: $ 11,097 Net Operating Income (NOI): $ 11,703 less mortgage expense: $12,835 Annual Cash Flow: $ (1,132) Monthly cash flow: $ (94.34)

In Texas PMs need to be licensed and being a Realtor VS being just a licensed real estate agent does carry additional operational requirements.  

Wholesaling is a hands on business, so it won't qualify, bottom line you can't run day to day operations of the business.

You are not subject to rent controls if you operate 1-3 units in the District.

However, Asia Pacific office markets will be more mixed.Retail | Retailers and mall operators are adopting new “placemaking” strategies to compete with e-commerce, which combined with stronger consumers, should stimulate more demand for retail space globally.Industrial | Robust demand from e-commerce and third-party logistics companies for warehouse and distribution space—including for smaller in-fill locations within major metros—will continue to reshape the industrial market.To download the full report, go to http://corporaterealestategroup.com/2016/02/14/cbr...

There are also tax advantages running your operations as a business but it could mean more work for your CPA (and you).  

Numbers are below.Monthly Rent Unit 1: $675 (hasn’t been raised in 15 years)Monthly Rent Unit 2: $995Monthly Rent Unit 3: $1,035Monthly Rent Unit 4 (my unit in which I rent out the bedroom): $650Total Monthly Rent = $3,355Monthly PITI = $2,862Monthly Utilities = $208So that leaves about $285 per month for repairs and other operating expenses.

You need operating expenses to do this.3.