The best way to avoid any future ugliness is to make sure up front that all parties (including seller and tenants) are crystal clear on the terms:Due Diligence Period (DDP) - I'm sure your contract specifies a period during which you can assess the home and then decide whether you wish to move forward.

If you want to avoid sketchy, high crime areas, steer well clear of Anne Street. 

I look forward to learning from everyone what experiences they've had, and to hopefully avoid making some foolish mistakes. 

Buy very cheap homes in my area, avoiding the worst areas, which I am fairly sure I don't want to venture into....still fix them up nice, not super nice ....and get pretty decent ROI (I would think) but then I would also think I would have to deal with more turnover or tenant instability....I am really thinking in this direction, as I could buy with cash and avoid financing. 

@Bill Gulley Same instructions apply, it's the "F" word you need to avoid as a wholesaler. :)

Anyone has been investing in Houston, please feel free to share your advice (which area to avoid, tips, recommendations, trends your are seeing, etc.).  

Also, I would avoid any houses in flood plains and it would be difficult to obtain insurance from what I have heard. 

Avoid T&M contracts if at all possible, unless you can be at the site full-time supervising everything.2.

You might be referring more to the timing of your refi and the risk that it be seen as way of taking boot and avoiding tax through the refi.  

I have been thinking about getting a job at Home Depot of something like that while I go to school and avoid touching my saving.