PROs:Adds a level of professionalismAccess to MLSNetworking with other agentsAccess to resources of TREC, TAR, NAR, SABOR, & other groupsListing your owner propertiesAbility to earn commissions (or given them up in order to get a deal)Ongoing education that keeps you at the forefront of the market, legal issues, & trendsCONs:More liability (assume professional liability)Some people just don't like RE agentsRealtor - often considered the last bastion of hope for people who have failed to launch a  successful career in anything else.Dues, Fees, Insurance, Expenses in GeneralSubject to rules and laws that don't apply to non-realtorsHaving to work with TREC (they are just very slow and cumbersome to work with)For me, I find it worth it to be a professional in my field.  

It's a family business that self manages and does all their own rehab work and does full rehabs to keep ongoing maintenance to a minimum and allows them to command top rents.

i plan on going to all the MAREI monthly meetings, last month was great

It might only take one of those things to potentially wipe out your CoC Return, periodically.If you're concerned about the neighborhood, I'm guessing your property Insurance will likely be double, and your ongoing repairs and maintenance will be significantly higher than 2% of rent, too.People can make money with these parameters - but the local market values are low for a reason.Others may have comments about that specific area.

Thank you David, if this actually fell into place an FHA was what I was planning on going with.

My guess is underestimating costs, either reno on the front end or the ongoing expenses.

I plan on going to medical school in the Houston, Texas area.

and just travel around the world while running my business (officially, have my place in SF.)Congrats on going through the fire, building your first place.

One word of caution is that a washer and dryer tend to be an ongoing maintenance issue (even if they're new).

On the IRA LLC side setup costs are from about $800-1500 for the LLC plus filing fees and ongoing fees vary quite a bit too.