I do however keep my a little below market value so I get a bigger tenant pool.

I did market analysis to find the right rental rate.

@Todd Anderson totally agree on finding a mentor in the market to learn from.

However, the property’s cost basis (what they originally paid) carries over to you, meaning if you later sell, you may owe significant capital gains tax on appreciation.Alternatively, selling the property at fair market value eliminates gift tax concerns, but your in-laws may owe capital gains tax on any profit.

Any advice on starting out on this in the Houston or Katy market?  

I’m looking to invest out of my home state, Texas, and have narrowed it down to 3 markets.

You should be able to use departing residence income from the market rent when qualifying for a new primary purchase.

Personally, I invest in properties in C-Class neighborhoods in my market (East Linden and Southern Hilltop), and they’ve been cash-flowing well so far.

Or find a deal first then market it to buyers, then offer on the house and create an agreement with the seller & buyer?

In a highly competitive tourist market like New Orleans, I update my photos weekly.