As a state, though, it seems to have a lot of downstream jobs, as per articles like Oil and gas supports 17 percent of jobs in Texas.Like any other bust cycle, state revenues could be impacted.

That to me seems like the biggest win you could have right now.It's a big risk right now proceeding, I think, based on what you described.

Michael...Using your example, we both know the journal entry that reflects the economics of the transaction is as follows:Debit Accounts Receivable: 9,000Debit Lease Commissions Expense: 1,000Credit Rent Revenue: 10,000You're arguing it doesn't matter because you're getting to the same place for federal income tax purposes...Okay. 

How many renters stop paying is the biggest wildcard for me and my investors at the moment.

Rent is probably the biggest expense of any household.

I am very curious to know, if you guys could walk me thru the process it be very appropriate. 1) Rental Property Cash Flow Analysis- Due Diligence: a) The first step to buying a multifamily home is deciding on the right neighborhood to invest in.b) Property condition: Take into account how much time, money and work the property will need in order to be rent-ready. c) Rent roll: Look at the current rents and compare them to the average rents in the area to see what the property should rent for and can help influence your buying decision.d) Revenue & expenses: Look at what rental revenues are coming in and what the current expenses are and see if it makes sense, remember to add in your approximate carrying costs to see if you will be cash-flow positive.e) Vacancy rate: Look for a vacancy rate below 10% and see how long each unit is vacant per year so you can figure that into your carrying costs. f) Loan calculation: Add your loan calculation into your Analysis.2) Work with a RE agent.3) Choose the Right Lender. 

The biggest keys in Real Estate Investing is to Buy It Right and Sell It Right.

I think the biggest thing to address first is that you likely would not be able to use a VA loan on this deal.

@Brandon Carlson - Bakersfield is the biggest of cities, with new distribution centers coming in, new construction happening.

My biggest concern right now is getting the math right so it will cash flow.