I am curious if I am understanding the only way a tenant in Texas has a right to withhold rent is if there is an amicable agreement between tenant and landlord or if the landlord fails to remedy a problem with the house that impacts the the safety and health of the tenants.I am trying to keep things simple and not complicated on this question. :)

Most cities would likely be best off with limited restrictions (limiting enforcement time & costs) other than enforcing any already existing health and safety laws.

I don't know Muskegon but I've found several great mangers across the country using NARPM.org. 

Successfully rented this house for several years now.

@Laila Ea Looks like several of your expenses are under-estimated, vacancy should be about 8% to give you 1 month of rent saved up each year, CapX of 5% seems low, typically that would be around 10%, and management of 4% is definitely low, usually companies charge you around 10%.

However, after researching it and having her actually do her homework it came to light that divorce, separation, health issues, moving for a job, and a few other extenuating circumstances were the only exemptions for no paying capital gains before 2 years of having it as a primary residence. 

With this being an older house with lots of little issues/needed upgrades, I worry that renting could be an issue without first making several updates. 

I have got 5 properties using several strategies (hope to have many more!).

Actually, prices in several parts of Huntsville and Madison have been showing exceptional appreciation. 

If you already have some capital to start with, that puts you several steps ahead of most beginners.