This requires a deep knowledge of execution, but is very rewarding and exciting.

If you are handy and hands on you are ready for some license more rewarding. 

If you want no risk, then there's not much of a reward.

If your original plan was to reduce rent by $25/month, then you're basically willing to give back $300 in annual value as a reward for this behavior. 

But the returns are worth it, and it's pretty rewarding. 

There's numerous issues; hole in floor and hole in wall, outdated kitchen, ceiling tile is coming off in portions, metal roof that screws need to be replaced etc...

A lot more rewarding.

Lending is about risk versus reward.

I know there are numerous groups that would oppose such a move (even in Texas) so I'm looking for anyone that may have experience with this strategy and can offer advice on the hurdles I would be faced with.

Rentals are no joke, and the risk/reward IMO is high, so it doesn't sound like a good fit...Or if you're just looking for more of a return, offer to fund deal with a local REI person for a higher return?