As an agent who lives in Merritt Island and appreciates the German Pub in Cocoa Village, I agree with everything you have written.

I lived in Katy for 16 years and I live in Tomball now which isn't far from Humble or Cypress.

Sure there are taxes on that each year, but no management issues, etc..Even a 1031 doesn't make sense sometimes.Keep in mind, someone might sell a $600k property with a $1 million basis if they have don't more than one 1031 in their lives!

I have helped a few other BP out of state investors get started in Hamilton, let me know if I can be of assistance.  

Right now anybody can create a fake lease and say they live in a house. 

I, too, aim to be as accommodating to residents as possible.However...For my own liability protection and personal sanity, I'll only schedule our group viewings for when the resident can be physically present.For one thing, I'm a digital nomad (currently living in Colombia), so I'm likely never going to be conducting their viewing myself.But mostly, I don't want a resident claiming that some priceless heirloom went missing or got damaged after holding a showing in their absence.We'll pick a convenient time, typically 1 hour on a Saturday afternoon, and set appointments for up to 6 pre-screened buyers to take a look.

Treat it like an investment, not just where your FIL lives, and keep the expenses separate.

Getting started is the hardest part of anything, but it sounds like you already have experience renting, holding, and managing property.That's one part of the BRRRR process that is no longer a mystery for you and I think that is awesome.If there are prospective deals that you are considering and would like some assistance for reviewing the numbers, that is one of my favorite parts of being a lending partner.

Get the best possible location you can afford and let your guests subsidize your living expenses. 

Tell them it is clear that they are struggling to pay the rent and need to find another place to live.