I do see pre-foreclosures, pre-probates, and tax delinquencies.

The income (rent minus management) should cover the costs (principle, interest, taxes, and insurance) depending on the property's price point. 

@Loren SouersI'm going to lead with the suggestion that you consult a tax professional and an attorney.Generally speaking, you can put a rental property in a revocable living trust, which can help with estate planning and asset protection.

So if Texas has no state income tax I dont think you pay tax on any loans in other states.

That might create some tax issue/book keeping complication.If @Brandon Hall is around, he may be able to clarify if this transferring of funds is a nonissue or a big deal.

That includes property insurance and property taxes.

For sure get hard quotes for the reno and for insurance and property tax increases.

Know that the market you're serving does exist, and is like an underlying current that's being held back by walled garden that the government has only recently scrutinize.Zillow, Redfin and Trulia has all attempted at disintermediation and increase market efficiency, but failed due to the market powers that maybe. 

This would lower your down payment requirements, lower your interest rate, lower your property taxes, and MAY make you exempt from state income tax.

There are advantages to many real estate assets, but that doesn't mean you invest in the them just to get a tax liability.