He still put down 15% on top of the 1st and 2nd position mortgages. 

Any insights and hand on experiences are welcome.

I can see cobwebs in a corner, dirt on the baseboards, cabinets that haven't been wiped down, etc.

The main issue with rental basement is water if it has water issue usually it is a simple fix .Clean gutters ,discharge gutter  water away 10" away from foundation, make sure you foundation soil is slopped away from it .If you need to buy soil get a clay mix .Cut back any tree too close to the foundation look at the drip line that's how far the limbs are out from the tree .If all that is done still has water buy a sump pump  carry the water to day light away from foundation 10" to 15" .

Too many new investors are focused on acquisition, and they never learn how to manage what they already own.

Still waiting on terms.   

So if Texas has no state income tax I dont think you pay tax on any loans in other states.

Just on your purchase and rehab you're at 220 if nothing goes wrong. $7k on holding, $16k in commission, $5 in closing brings you to 248 if everything goes according to plan.

Even with an all cash purchase, one would be lucky to get a meager 5% on your cash.

The timeline on that appeared to be potentially lengthy and costly.