@Lou Ruggieri,alternative thinking:-clean basement floor to perfection-waterproof membrane/ couple layers of exterior grade paint (encapsulate any asbestos dust)-exterior grade carpet : because you are up north/cold floors; if flooded, can be taken out, disinfected and hosed out, dried out, replace backalternative thinkhing2:-clean basement floor to perfection-waterproof membrane/ couple layers of exterior grade paint (encapsulate any asbestos dust)-treated 1x1 (as "ribs"/"joists")-lay exterior grade plywood/ost on top of it-floating floor on top of that: preferred here is Allure LVP from home depot, but many available from reputable manufacturers; probably floor needs to be rated for under grade/basementsortile everything and provide rugs + non-slip underpads

Needless to say, a pool would seem to add a whole new layer of liability, maintenance, etc.The second "off-market" property presented was in a neighborhood that by all accounts, is the ghetto with huge crime problems.  

You might be able to be a pretty decent renovation mortgage specialist after a year or two of doing normal mortgages is layered on top of your existing experience. 

Much of Texas has limestone/caliche 6"-36" under the top layer.

@Vincent HarrisI wouldn't recommend investing out of state for your first property, as it adds an extra layer of difficulty in analyzing properties since you don't know the area and can't just fly out there to look at it.

Even with all that experience, and multiple layers of protection from bad contractors, we have still been robbed twice in the past 4 years by shady and/or desperate contractors.  

Timely and clear communication is vital.  

I want to give you my two cents and I'm going to link to a previous post where I commented on some vital HOA information.https://www.biggerpockets.com/forums/311/topics/405977-town-homes-vs-single-family-vs-multi-family-homes-in-minneapolisI recommend reading my post in the above link and then referring to some informational provide below.So from the sounds of how you're describing it, basically it would not qualify for Fannie Mae and Freddie Mac for whatever reason.This could be the case for many reasons.

Also adds a layer of professionalism even on off market deals. 

I’d use denim insulation, resilient channels, then two layers of 5/8 drywall if you can.