Never considered it a market to invest in.

No issues and tenants are renewing.That indicates tenants were paying below market rates.If the market rate for a 2-bed/1-bath apartment is $1,000 without utilities included, then he should adjust his rate to $1,100 because it includes $100 in utility cost.

Purchase price: $35,000 Cash invested: $35,000 Sale price: $110,000 A fix-and-flip project purchased off-market from a tired landlord involved buying a distressed property with significant deferred maintenance.

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

Any tips for navigating the competition in such a hot market?

Get it under agreement for less than asking price and offer to bring the loan current and have them carry that loan.The way I see it is they are just getting MLS properties under agreement - the last five I looked at had been sitting on the market for more than 150 days (overpriced) because the payoff of the loan would not be satisfied at lower price point. 

It's one of the hottest markets in the US right now with so much population growth, job growth, and companies moving/developing here (26B Intel headquarters being built here, 68K+ enrollment in Ohio State University, Amazon, FB, Google, Honda, Nationwide, Anduril, etc.).

The issue I see is that market has historical appreciation below average (not bad, but slightly poor).  

In general, government will set the assessed value lower than market value at reassessment in order to neutralize appeals.

It's not illegal as far as i'm aware, However it only works because section 8 is so competitive in D.C, I imagine it might be a turn off to potential tenants in less competitive markets