And you did this without paying any tax.

They own the house, they're responsible, they choose the house, the tenant, responsible for taxes and insurance and loan payments. 

Just make sure to familiarize yourself with how Texas taxes work. 

Our mortgage payments started at $2300, but due to increasing property taxes and insurance, they have alarmingly risen to just under $3300.

After two years I understand for tax purposes I sell it as a rental.

Not sure what new tax laws bring to the table.

Now you have a brand new property that has no mortgage, rents for $2,000 a month with $300 a month in taxes, insurance ect…profit $1,700 a month.

Just remember to research specific areas, consider market conditions, and factor in costs like property taxes and insurance.

Im in NJ, but not sure it's the right market for me due to very high taxes and cost of houses. 

In your case you have a lot of losses in the time you own the property but these losses transfer through to your personal tax return, so you can recover some of it and not have to count the full nominal amount.