The biggest problem is that there was no disclosure that you could be disqualified for debt/equity ratios.  

As you may know Texas is a Non-Disclosure State, so the amount you pay for a  property is NOT recorded in the deed records.

I would just advise of FULL disclosure when working a deal with a seller on your intentions and their ability to possibly get more for the property on the open market.  

The Deposit shall be credited toward the Purchase Price at COE. 1.1 Property Address: ____________________________________ ____________________________________ _________________________________________ APN: ____________________________________1.2 Legal Description: As stated in the Commitment to be provided by Escrow Agent.1.3 The Property: The real property described in Sections 1.1 and 1.2 together with all improvements, fixtures, and appurtenances thereon incidental thereto, plus the personal property described in Section 1.12. 1.4 Earnest Money: $__________________________ (the "Deposit")1.5 Purchase Price: $__________________________1.6 Close of Escrow: _____________________, 20___ (“COE”)1.7 Escrow Agent: Name: ___________________________________________________ Address: _________________________________________________ Escrow Officer: _______________________________________ Email: _______________________________________1.9 Parties: Seller: ________________________________________________ Buyer: ________________________________________________1.10 Inspection Period: _____ Days1.11 Closing Amounts to be paid as follows: Escrow fees and costs: ☐50% by Buyer and 50% by Seller or ☐100% by Buyer; standard title policy: ☐Seller or ☐ Buyer; HOA fees (disclosure, transfer, capital improvement/reserve) (if applicable): ☐ 50% by Buyer and 50% by Seller or ☐100% by Buyer.1Seller Initials: ______/______ Buyer Initials: ________3.

Disclosure: I mainly have commercial office/retail so I don’t know what I’m talking about.1920s house probably heats via radiators and doesn’t have AC.

However you better be sure you have extra disclosures.

Once you start escrow with a buyer, who’s using a loan and/or a Realtor®, then you start getting into disclosures, contingencies, appraisal, inspection, and termite reports, and making sure your buyer and the property meet the lender’s guidelines, and ultimately close on time.

@T Sanch It’s great that you are researching REI before jumping in.Full disclosure I love BP but I am from Fortune Builders.In my experience and from my education,we flip for cash flip for cash than buy rentals.Also you can actually spend less on the rehab if your doing a rental than trying to get top dollar from a flip.The mechanicals should be good but the finishes could be less.I just completed a rehab with a $55k PP$30k rehab that I planned to sell for 125,000.My agent suggested we list for $139 and we got an offer for $146 first day.So 21k over what I thought,how much rent would it take to make that up?

There are disclosures that we always have to let others know.

(fair market price, honest representation of the property, full disclosure, honest projection of cash flow, etc)I spent the last few weeks searching for some positive, but did not find any verifiable case.