@Andre Minasyan,He mentions the supply vs demand issue.He did not mention the factors which are currently dampening demand.Lending is still quite dear, though there has been some improvement.

I hope I am within the rules.  

I assume  you want  to improve (rehab) it to a B property. 

I'm newish to Houston and looking to shift my investments from appreciation plays (4 or less units) to Mom and Pop Multi-Units that could use improvement.   

You'll need a lawyer and accountant to decide the best way to handle ownership since there are rules surrounding syndication (though it doesn't sound like that's really what you're are doing.

I have read the rule of offering 70% of the ARV minus repairs.  

At that point you can make the rules for the TB.

Then you can easily get confused with the rules that often seem contradictory.If your goal is to get a general overview, the BiggerPockets bookstore sells two books on REI taxes that are an easy read, unlike the Vernon Hoven book recommended by someone earlier.

Obviously, that can be a disaster.Also, there are lots of rules about how to operate an LLC so that it actually protects you from personal liability.  

I remember the EBSI rule by Robert T.