Subdividing the lot would add an additional $20k in expense as I would need to tap city water/sewer to the new duplex (previously the detached garage apartment).

The weather is very hot and water is expensive down here in Texas.

I tried to help but don't want anyone to feel pressured, so I consider the matter closed.well U can lead a horse to water but cant make them drink.. keep in mind many of these folks were or are beginners .. so they may feel very intimidated to do anything but a post on BP.. and or are worried that somehow they will get sued by this guy..

Can you make the payments on the mortgages while renting, even though you are under water?

I can get a great beach front house, one warm waters (Gulf Coast) with pool, 3K sqft, maid's quarters, in trendy area, very new high end finishes for about $2.7m USD.

There are lots opportunities in easy bay township or downtown Condos (where str is allowed.) direct west of TC has lots str experience opportunities (water front/ farm house , wineries), direct east close to Williamsburg has great opportunities even for long term summer rental to the horse show participant (June to Sep).

For example, a distressed house may cost 200k and if fixed sells for 350k, but it needs 100k in work so the spread is 50k and then work in all the holding costs and closing costs and if there is any hiccups you are under water. 

It seems like this is highly shark-infested waters, with lots of scams and scammers, and the actual information is difficult to obtain...

Regarding the other things, this garage was a room before, so it has electricity and water as well because they had the laundry situated there to so, should be much easier.

Bathrooms are considered one of the most dangerous rooms in a house because you have a mixture of water and electrcity in very close proximity.