While the circumstances of your family trust management agreement are unknown to me, it sounds like you may have an obligation to protect the interests of the trust even if it means your nephew misses out on a real estate investment opportunity.  

Slowing job growth in Central Texas, the impact of Hurricane Harvey on the price of building materials and housing development costs, and the overhaul of the U.S. tax plan are all factors that could hinder housing market growth and negatively impact housing affordability in the Austin area in 2018.”The ultimate outcome of the CodeNEXT process are still largely unknown:“2018 will be an incredibly important year in determining the future health and sustainability of Austin’s housing market and its communities,” concluded Guthrie.

I decided to exit the rat race for good and venture into the unknown.

Much of the risk, besides the obvious issues with holding an interest that isn't recorded, is unknown (even unknowable) with the uncertain application of the new legislation and how mortgage originators might adjust internal policies.

Sales price - $347,774 (261,700/$105.35 = 2484 square feet x $140)Selling Closing costs $34,777 (3% to buyers agent, 3% to sellers agent, 1% to title and 3% to sellers concessions)Holding costs $2000 (large home held for 2 month rehab, 1 month in market, and 1.5 month closing)Hard money - $11,611  (90% of 262k x .9 = 235,800 x .12 interest rate = 28,296/12 months = 2358 x 4.5 months turn time = 10,611 + 1000 doc fee) unless your not using hard money.Rehab 25k (I think this might be a little low)Purchase closing costs - $3000Purchase price - $261,700Profit = $9685 (unless you can sell for more, rehab for less and still keep the sales price, don't use hard money, or you can lessen the closing costs)The unknowns are how much value not having a pool can bring down the sales price, if the rehab is more than expected, length of time to sell, etc.I think it is great that you are jumping in, I just didn't know how you were working your numbers and at a relatively high price point in AZ I think it would be important to do the numbers right otherwise you may lose on your first deal.How are you running your numbers?

If a lot of unknowns you have to go worst case and price in risk with a much lower offer.If you do consider owner finance look at an option period before you buy, get estoppels signed by tenants, and do not give a personal guarantee so that if it turns into a money pit you can hand it back and walk away.No legal advice given.

Yet, since I am a buy and hold investor and my knowledge of this area is limited, the state of the rental market is always an unknown for me.If you have investments in these areas, please chime in and provide some input.

The unknown X factor is over what period of time, & how much how much over what you paid will you recover.

Even then, they are walking into the unknown as far as condition of property, holding cost, repairs, etc.

This angers me because we do very strict screening and having an unknown element, while most likely harmless, it is not good business.