I am about to buy my first property in Ohio and I would like to gain as much information as I can in regards to the different legal issues of which I can face in Ohio.

But if you have the capital or access to an investor, this sounds like it could be a good deal, but at $900/month, I'd estimate your ARV will max out around $85k.

To gain investor confidence, ensure the investment property numbers are real, use the most common contract forms in your state (versus a 2 or 3-page) internet/guru contract form) with appropriate addenda, or an attorney-drafted form and attorney-drafted assignment agreement.

If anything, at least wait a year so you don't pay short-term capital gains on the sale of the property.I need to find some more deals like that here in Chicago...where in Houston was this property?

I gained equity in the property, and I got higher rents which lowered my living expenses while living there.

Talk to an attorney to access your risk. 

If I got a home equity loan for Property 1 and used the proceeds as downpayment for Property 2 and then got a 2nd loan for the remaining 75% purchase price for Property 2, when I sell Property 2, can I use the Property 1 loan as part of the cost basis for computing Property 2 capital gains?

Regarding a HELOC, most banks will only provide a HELOC up to 75-80% of the property value, so you may not be able to access a HELOC for a while.

If you have access to outside capital/equity, you already have an advantage over most.

Are there other, more cost-effective alternatives to gain similar support and knowledge?