I'm working with Foundation property Management but that's not going well either.

Where the loans go wrong is usually not with the loan terms. 

But being a local it seems like the prices are only going higher. 

We ended up going back to the tried and true Excel Spreadsheet.

You can go through the link below to file a BOI.

An easier route would be to convince him to go in on the short term rental together in a partnership. 

and then go from there.

Never built in Houston before so take my feedback with a grain of salt but I'd put money on it being impossible to build a duplex from scratch for $125 a foot (including everything from drawings, engineering, permit fees, general conditions, labor, material, landscaping).Out here in AZ the builder cost is going to be $200 a foot at best, but add 20% on top of that for the client cost.

I primarily buy local so I actually go see the sellers and the property in person if I can. 

Start ups are hard, expensive, and take a long time to get going.Have you looked on Bizbuysell, Crexi, or Loopnet, to see if there is one that is already going for sale?