I have everything from a realtor, lender, tax and credit specialist, contractor etc... wondering if it will be worth it to invest here in Houston versus Chicago.

I assure you, the HML would MUCH rather deal with experienced flippers who know what their doing versus a newbie who will under budget, exceed time line, etc. 

Make sure you understand what charges are pass thru charges versus title charges.  

I guess I'm fuzzy on "surrounding" versus "nearby" here.

Given that you're already to the point of having an offer accepted you're going to want to develop a very clear picture of the actual expenses measured against the income to be more accurate in terms of what you could actually expect for cash flow.I think it comes down to what the house is currently worth versus comps regardless of what it was listed for since the offer was accepted only $4,000 below their asking price at that time. 

Of course, if real estate is your full time business, it becomes more worthwhile.Therefore, can anyone dispell the potential rumors that real estate is not a decent investment vehicle versus stocks, mutual funds, or an assorted variety of investment options?

The owners are NOT pet owners and have a different expectation versus the reality of the situation.   

I can only offer advice from what I see after seeing so many appraisals and unhappy investors after finding out current value versus improvement costs/renovations.

Plus, 10 year warranty versus 5.

If you have to foreclose you will get back what you sold versus a parcel that has been timbered, plowed, half built buildings, badly placed driveways, etc.