For smaller investment amounts, we often see investors providing private loans or notes to other investors for their projects, which can offer attractive returns with the right due diligence.

Moreover, as others have noted, explore investment opportunities in your market before considering purchasing out of state.

That's way better than taking notes from a guy.

Selling at FMV avoids the gift tax but provides your child with a higher tax basis, reducing their future capital gains liability.A better strategy for selling below FMV is to sell the house at FMV on an installment note, then forgive interest and principal annually up to the gift tax exclusion amount.

I should also note that the project would be ground up and the FHA loan would be a one-close construction to a permanent mortgage 

Then purchase a Note, generate $250 - $300/mo tax free!

Happy to chat, network and compare notes with folks in this space. 

Chris is a high level note investor, he has that network.

I don't foresee Texas implementing a similar law, but I'd be interested to know how this change has affected others.Side note: It's not the Section 8 tenants that I'm avoiding, it's the government bureaucracy that comes with it.I believe the majority of the US population lives in states with the same law.How do we navigate it in those states?

Or are you actually talking to a bank about buying the note so you can see the notes and credit on the owner of the property?