So again I would never paint the yellow vinyl siding for a flip for fear of potentially causing very expensive problems and for no reason 

, unfortunately that is not the case, I see many of you on this site looking for deals in big cities and other properties that just aren't going to preform as well when the next crash happens (Biiiiiig Speculation), but in all honesty if your not investing in areas where the majority of the population collects a paycheck every month for the next 4-6 years without fear of a stock price or layoffs then your request on the forums seems a little pointless.

If the numbers work, do not allow fear to stop you from moving forward.

Now, as far as the tax implications I was worried about, it was based on the fear that my aunt would have no basis for the property and would owe the IRS taxes on the entire purchase amount.

You have calmed those fears with this post as I can check all the boxes.

Don’t get bit by the “Fear of Losing Out” FOLO!

I wanted to validate what I was quoted was fair and standard and to share my thoughts/feelings/fears in regards to the agreement. 

@Caleb Heimsoth said something that I've already fear which is the taxes and insurance in Houston. 

I think everyone in 2005 had the fear of missing out syndrome, so they all bought (myself included). 

I think many of us often float in the 'ether' of REI and are paralyzed by fear, numbers or simple complacency.