The market here in Lexington is really hot right now and deals are hard to find, but they can be found. 

(After all, it has been three months and the market is red hot and appreciating, and they are owed $200k and counting on the mortgage!).

Your agent should be able to direct you to an attorney who can provide advice on this as well as accurately describe the risks to both sides. 

I'm trying to get an idea of where hot area's are and where murder alley might be. 

I have a side job, so will not need to depend on selling as many homes as possible to survive and I live minimally.

I've been researching available properties on line and driving around town, but it's such a hot market here in the Dallas area I can't keep up with how fast the houses get pulled off market. 

That's 3 hot water heater, 3 roofs, 3 heating/cooling systems, 3 of everything... including 3 crappy tenants all somewhere far away. 

It's a 2b/2b with a 2car garage and the other side is a 1b/1b one car garage.

Lyon Hey Henry as a REALTOR ®, investor and property mangement company owner, I can tell you Cabarrus County, NC is hot as well.  

Buy a duplex or small multi and live in one side, and rent the other.