Hi Kana - I think it depends on your budget of course.

I will say you do enough underwriting and something will eventually get missed (my last rehab was my first to go way over budget due to various reasons so I am not perfect).  

Depending on your budget, I'd recommend areas like Olde Towne East, Clintonville, Merion Village, Grandview, Southern Orchards and a few others. 

If your brother is looking to invest in real estate largely from a tax reduction standpoint they should pay a qualified real estate tax strategist to review their specific situation and what may or may not work for them. 

What is your budget and what numbers are you wanting to achieve? 

@Sharon Porter What specific part of TX?

I think having a balanced budget would be ideal where you allocate money into buying another property and money set aside for renovations.

I recently put together one myself specifically for beginners who want a structured guide from setup to first booking.

The other is a smaller operation which does a lot of business in the specific neighborhood the house is in.  

But, since you seem to be implying very specific things, but without being specific.