Just make sure to properly calculate all costs and expenses to ensure that the property is in fact profitable. 

I'm curious of all the landlords out there, how much of the turnover that you charge to the previous tenant and how much you incur as the landlord's expense?  

I would also add real estate and bonds to the list as well.I think we are in a deflationary environment (i.e. too much debt and excessively low interest rates) and expect the value of most asset classes to fall over the coming few years.Like you, I'm saving my cash and hoping to buy my first rental property when prices come back down.Best of luck with your investments!

Do you think it is going to be hard and/or more expensive to find contractors in Houston?

I have been going back and started to see lots of fishy expenses from my, property management company, for one of my out of town properties.  

I do have a flip in Louisiana that sits a little low that could have issues but the lot is probably worth what I paid for it

If you don't have to spend any money to get the cash-flow I believe it's better to just be patient and wait on the rehab.On your particular deal , hard to know without more specifics but if you assume 50% operating expenses, they are asking a 4.6% cap which seems really high for an older, partially rehabbed property.

Who are you defining expenses and who keeps track?  

We would then live in one unit, use two units to pay the debt service and operating expenses, and the fourth unit goes to the lender/investor to pay off their position.

He told us what he initially wanted and we made an offer around $100,000 less and the seller accepted.We also asked to do this as a land contract with 20% down 4.5 percent interest which he also accepted.At this point I thought to myself, that's it for the year and low and behold the phone rang.