I would imagine it would take a lot of due diligence to be safe with this type of business. 

Welcome to the site @Jeffrey MiskyI imagine you will be able to network with many members local to you and that area here on the site.

I cannot imagine how any lender would go with that, especially when they know the contract price.

I spend an hour at lease signing going over rules but that was 2 years ago.Stopped by the house to make sure it was locked up (back door wasn't locked) and never imagined the electricity would already be off, but it was because of smart meter.

To give one example, imagine an investor who buys a property with seven rooms, one kitchen, and three bathrooms.

I just imagined myself in that environment....I will say that you would have a stellar opportunity to learn what NOT to do:Tenants are not friends, the lease is a contract and absolute, repair requests need to be in writing and work is only done during business hours, calls are answered 8-to-5, don't knock on my door, etc. 

it is the only way you can get the result you expect, and you can take the scope of work to the prospect to show precisely what will be done.If you just say "we're completely rehabbing" their mental process may include much more (usually) or possibly less than what you imagine.

I can't imagine rents received will be more than HUD FMR, which is $863/month for a 2 bed in this zip code

I imagine there are older homes that need work and are still relatively affordable for Austin. 

I imagine the San Francisco's, Austin's, Seattle's are closer to 2 or 3 %.