2) Concept number 2: I always though that Einstein meant stock market,  and never in my mind applied that quote to real estate.

@Eddie Werner I've already gotten inspections done, so I know what cap ex's will hit me in the immediate future.

A lot of the management actually comes from just being available, making sure items are stocked and that your cleaner has the tools they need. 

I think this is why internal rate of return exists - I know we're talking about rules of thumb, but if I've got a property in an area expecting lots of rent growth, I can add value in other ways, etc. over the course of a few years, the present value of those future cash flows and any other liquidity events become very important and it could make sense to accept a much lower CoC in the near term. 

My future portfolio will be about 5-10 single or multi family residences.

It teaches them bad behavior and ultimately they will get evicted by you or some other landlord in the future.

If it meets the criteria for a good investment at 310K, you are accounting for all expenses correctly, and the property is truly turnkey with no major capex in the foreseeable future then by all means go for it.  

Feel free to reach out if there's anything I can help with in the future.

I understand that I would get penalizes 10%, and I would have to pay tax on the money as extra income, but if I find a real estate investment that has a return of 8-9%, I can have the 10% penalty paid back to me on the first year of owning the property and then I can utilize the future returns right away rather then waiting till I'm 62 with 401K. 

It's hard to see a slow down in the near future with such a large, diverse, and business friendly economy such as Houston's.