But I'm slightly risk adverse so I'd likely have 6 months of bills in a separate account for the home anyway.

Another option is called adverse possession.

I am not a risk adverse person and I am handy and good at managing a current single family home.

If it's paid off then likely they are debt adverse.

I'm not sure what your laws in Texas are, but you should also explore their ability to file an adverse possession claim.

I can't speak to anywhere but where I've purchased but there are a lot of bad surprises that come from arriving at valuations based solely on 3 comps and considering nothing else (no, I won't take the time explain my process but look up the appraisal expression "adverse conditions" as a way to get started in the right direction).So, insurance to keep the sellers of sub to properties needed to be $1.5 million. 

Yes, I still need to disclose adverse material facts relevant to the physical property but I can not offer my opinion as to why this would not be the best flip or rental. 

They are hated by people who break the rules in the first place (and I am not just talking about the "at least one bath a week" rule) and have to feel the adverse effects.

Because of this I look at financials based on how protected the applicant is from an adverse action with myself being the potential adversary.

For a developer the question is how to give the buyer what she wants in an enviroment adverse to change.