I've been trying to buy it but the bureaucracy has been brutal.Anyone done anything similar or am i treading in dangerous waters?

I'm in danger of analysis paralysis after looking at so much, and the numbers on many houses in the areas we are looking in (north, north central, northwest) are in the end very similar:https://www.biggerpockets.com/buy_and_hold_results/258048Thanks in advance, Jon

Just one of many, many, many reasons why investing in out of state markets where you do not have easy physical access, market knowledge, and an established, proven team of trusted professionals already in place is VERY dangerous, especially for newbies.

Don't allow dangerous breeds of dogs, and @John Anderson is right about the damage pets can cause.

That house looks like it is in seriously good shape for that neighborhood.Here are my concerns:South Park is one of the most dangerous neighborhoods in Houston (it sounds like you are aware)  We have wholesaled a couple properties in there. 

Still, demand is high and supply remains low (except luxury rentals, which is in bubble territory right now).BTW, all units in this project sold last year for 2k less than asking across all 3 units and we were very fortunate to have all 3 go under contract right before the snow blitz began.After the sale, we did have to go back and remediate mold in the basement.  

These sources are a dangerous way to get started if this is your first deal.

He estimates they'll have about $200K to put down after their house sells where they live now, but SFRs where I live are easily in the $650K+ range, which puts them in jumbo mortgage territory and their credit score - at 650 - is falling short.However, they pointed me towards a house they saw on the market for $638K.

You will need to learn the local answers to your questions about this potentially dangerous area.With my last purchase on the courthouse steps my attorney told me someone could've filed a lien on the property AN HOUR before it closed and I would've been left holding that bag.In another example, around here a tax sale wipes out all previous liens EXCEPT for the IRS which has 6 months to show up and surprise you.Point being it's more or less different with each locality, and each entity doing the selling.YOU must become the expert in this area, just like you previously became an expert as a LL.Find a local attorney who specializes in RE, pay him his hourly fee and sit down to learn the ins and outs of your new chosen niche.

There's loads of info on how to do this, and how to do that, but I feel rather uneducated on the "why is this dangerous?"