After the death of the other joint tenant last November, I updated the title to reflect myself as the sole owner (not sure if this makes a difference or not in determing my basis for the property).

After six months another $5,000 will be deducted from our deposit and or added to the payoff($200,000).I have an Agreement of Sale that reflects a purchase price to include down payment and closing costs using $23,000 down payment and seller's assist to cover closing costs.Might be more confusing now!!

The risk in this area fits what is reflected by the market.

They're doing this:W2 income: +6,000Primary residence PITI: -1,500Rentals gross income: +9,000Rentals mortgages: -7,500In the first example, my DTI would be great, and that more accurately reflects reality as my net income is increasing with each new rental.

The BP Wholesale Calculator reflects a Sale Price of 139K.

Not as "cool" as the areas you listed but that's reflected in the price and cash flow. 

Originally posted by @Jiji John:I was surprised to see the lack of rental homes in certain Houston markets even though the data says the rentals dropped by 13.3% but the rent went up,let us hope this will go on like this until next year.I believe this is a reflection of lack of supply at this low-end price point.  

While we have a reflectively high income (near $200k year and good future projections) and a strong network of people with experience doing renovations, we don't gave the 20% downpayment.

The attractiveness of the NOI is reflected by how many dollars an investor is willing to pay for each dollar of NOI. 

Call local landlords through leads on craigslist, zillow etc. and see what their standards for tenants are, if it's low that reflects the level of tenants for the area.