The overall LTV (including all 3 mortgages) will be key and your selling point will need to be that the 2nd mortgage ($8k) will burn off in 2.5 years (based on your surprise that it was even out there, I'd recommend that you follow up in 2.5 years and ensure that it's been satisified, so that it doesn't surprise you again in the future).Does the $8k grant vest over the 5 years? 

I've found that every time I've tried to get "clever" in my investments and pick the next hot thing, I've gotten burned. 

LOTS of sellers got burned back during the foreclosure crisis with Sub2 deals. 

If the place burns down (which it very well could because K&T is a big fire hazard), and the insurance company finds out you didn't disclose there was active K&T, they will certainly deny the claim.

They were also more likely to smoke in the house and leave burn marks on furniture.Now, I’m shifting my focus to families and business travelers, especially since we’re only 5 miles from the Houston Medical District and major attractions like Minute Maid Park (home to Major League Baseball's Houston Astros), Toyota Center (home to the NBA's Houston Rockets) and the NRG stadium (a multi-purpose stadium with seating capacity of 72,220).

What are the odds your house burns down or gets hit with a tornado?  

I think he started getting burned out.

This doesn't mean you should because out of state investing for a newbie is difficult and if you listen to the wrong people can really burn a whole in your pocket.That being said, if I were you, I would likely diversify my assets.

So grateful you introduced yourself.. what's the one burning question about investing that keeps you up at night?

This will crash and burn eventually when real estate (temporarily) resets itself and reprices the assets down.