(By the way, despite popular outcry, there are no new rules or laws in this lease.

Even if her will stated something else the the property would still go to you upon her death.A joint tenancy or joint tenancy with right of survivorship (JTROS, JTWROS or JT TEN WROS) is a type of concurrent estate in which co-owners have a right of survivorship, meaning that if one owner dies, that owner's interest in the property will pass to the surviving owner or owners by operation of law, and avoiding probate.

I got married and managed to scrimp and have $50K by 1983, and my mother in law, who by then retired, was able to help out with her life savings, and her husbands life insurance put in another almost $100K.

Looking for a referral for my brother in-law. 

I don't want to break any laws or official rules.Anyone know how that would work?

Do  state tax rates and other local real estate laws influence where you invest?

Based on the law of supply and demand, your hypothetical statement rings true. 

Why would you spend your money in a BAD neighborhood and in a city where the law is in favor of the tenant?

Unless real estate law is dramatically different in TX than it is in MA (and it could be), he is under a legal obligation to disclose these defects to other buyers.That said, I'd walk away. 

Research the max rates you can charge (usury), and laws about private lending in your State.