The question is mostly a personal financial planning question and it depends on your preference and what balance of risk and access you'd like and would be comfortable with.

Personally, I'd start looking in markets you're familiar with, similar to what you said in your post.

Personally I would want to manage the rental myself at least in the beginning to make sure you get good ratings.

@Shawn Questa I agree with you that there could be some opportunity here, but personally, with that little equity in the property, I'd wait for the pre-foreclosure process to start and  perhaps you can do a short sale (though I don't know the details on how that's handled in TX).

It was a personal referral, received a credit at closing for renovations as well How did you finance this deal?

I'm a passive investor and these properties are in a different state than I reside in so I'm not there in person often. 

Better option for personal use but perhaps not rental. 

Awesome to see a new investor-minded person here.. do you have a favorite real estate success story already?

I personally hate them and think they are little more dust magnets but will add some if crucial. :) 

I personally don't know of their group but figured id link that article since i remember reading it and the name clicked.