Quote from @Khon Kounbandith: The house was in good condition. 

Renting to a friend can complicate things, especially if you're starting below market rent.

I would keep rent a little below market, then split the monthly bill between the tenants on top of rent.Old houses in cold climates get expensive in the winter.

Meanwhile, the sellers who are most likely to offer creative financing are normally the owners of  real estate that have issues.....condition.....low barrier/over supply market......or perhaps pricing issue, and one of these factors is why its not marketable in a arms length transaction and why creative financing would be accepted.

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Was the condo a good size unit and in good condition?  

To make the strategy successful, you need to find a property that can be acquired below market value.

Any advice on potential MTR markets near Houston and surrounding areas?

The area is way to pricey for my budget so I do all my investing in midwest markets (Memphis and Detroit mostly).

, see that under "sale conditions" it's listed as 1031 Exchange, what affect would that have on me - somebody interested in purchasing their property?