I suggested, he reach out to Floridacentral Credit Union that his mother has used for years and apply for a refi loan.

Infact, I would have to show tax returns on LLC for two years before I can include it in pre-approval. 

I live in Spring TXfor reference my mortgage, taxes, and insurance are $1840 each month, $385 per year in HOA fees 

Sellers motivation shouldn't factor in what you can afford, thats a bonus if they will negotiate, but your numbers have to make sense to you and work out for multiple exit strategies (str, ltr, sell etc)Running the purchase numbers is pretty straightforward, use almost any online mortgage calculator, make sure you know taxes and insurance (taxes will go up a bit if it is currently owner occupied and you don't plan to live in it) Once you know your mortgage amount then start looking at other STR's in the same area and same size/amenities and see what they are getting per night and how many nights a month they are rented to calculate what you MAY be able to get.

Pay off debt, build your credit, and increase your savings rate. 2.

I am thinking Austin TX might be a good place to start due to the state's tax incentives and the recent decline in prices.

I have been trying to build my credit, i spoke to a couple of lenders, contractors, been reading some books from this platform but yet i need a push as to making the right decisions, i will much appreciate if someone will reach out to help, thank you.

This will be my first rental property so want some advice.Purchase price - $195KDown payment - $59,176 (25% plus other closing)Annual rental income - $29,424 ($2,452 a month for 4BR)CoC return 10.7%Cap rate - 9.7%; Price to rent ratio - 6.6Cash flow will be over $5k per year after paying taxes and mortgage.

Since you have a good W2, why have the cash flow to report income and pay more taxes on?

Jennifer - If you have vetted the prospective tenant thouroughly (i.e. credit check, income qualifications, etc.), you shouldn't have to worry whether or not you sign them up for a 1-year lease or a month-to-month.