Screen, screen, and screen again. 

When it comes to tenant screening, I usually always follow the best practices.

So here's how it played out in my head.1) Get a loan from a Hard Money Lender for $120k.2) Find five properties for $100k or less.3) Use $100k of the $120k loan to make the down payments and keep the other $20k in reserve to cover closing costs and any minor repairs needed for the properties. 4) Get the properties rented out and within six months to a year, refinance the properties to pay off the original lender.Now, on paper, this idea sounded really good and I assumed it would be feasible. 

Know your resale value before you step into any purchase and make sure it will cover your expenses - including realtor fees, property transfer taxes, etc if you'll be selling it in a year or two - and then include the profit you intend to make too.I'd also encourage you to research mortgages from an investor's point of view. 

Instead, we are putting this out, with proper contingencies (inspection, appraisal, financing, etc.) to give confidence to the seller that you intend to buy at your stated terms, barring any unexpected hurdles covered by your contingencies--which can ethically be negotiated should they arise. 

You did not hold out enough to cover the vacancy and probably not enough for the repairs. 

When you say "Katy" that covers a pretty large area with a wide range home sizes as well as price points due to ages of home and neighborhood (crime, schools you are zoned to, etc.).   

I didn't know who I was going to room with yet and wanted the flexibility to screen and choose my own housemates, so I took on the lease myself as Master Tenant.

Cover your butt and all. 

Our building company would be hired by the LLC to complete the renovations, and we would put a small markup (not as much as we usually do) on our services just to cover overhead.