Welcome to the journey - you're off to a very strong start! You’ve already defined a clear strategy, which puts you ahead of most new investors.
If you're open to investing outside Texas for better returns or diversification, here are some landlord-friendly, investor-friendly markets with potential for your target cash-on-cash return:
Midwest: Indianapolis, IN - Strong rents, low property taxes, lots of solid PMs Many SFHs trade below replacement cost
Cleveland, OH - Low purchase prices = higher CoC Be selective about neighborhoods and PMs
Southeast: Birmingham, AL - Cash-flow rich, very landlord-friendly laws Strong PM options + below market deals still available
Columbia, SC - Military + student tenant base, lower entry points Appreciation potential and steady rental demand
Tips to Hit Your Return Goals: Work With Investor-Friendly Agents Find ones who know how to spot value-add potential or off-market deals Vet Property Managers Early They’ll tell you realistic rent numbers and where to avoid Use Deal Analysis Tools A simple spreadsheet or calculator like the BiggerPockets Rental Property Calculator helps you keep emotions out of it Plug in real taxes, insurance, maintenance, vacancy, and PM fees Look at Light Value-Add Opportunities Cosmetic upgrades ($5K–$10K) can bump ARV and rent, and still be manageable for a first-timer
Know Your Exit Strategy: Will you hold long-term, 1031 into larger properties, or refinance in 2–3 years? This helps guide your risk tolerance and loan structure
You’ve got all the right ingredients - now it’s about finding that first solid deal to prove the model. Let me know if you ever want to go over markets or look at deals side by side - always here to help!