I started off pretty unsure which direction I wanted to go and ultimately landed on house hacking, which I am a little biased but think is the best route for rookies.

Based on current rent not potential rent max price should be 900k to be able to cash flow property. 

Your lack of concern for what your lack of knowledge can do to them, hiding behind the false narrative that you are helping them with your "investment strategy" is going to land you in hot water some day.You don't need to justify your actions to me but let's just hope you don't get put in front of a judge to justify them to the courts.

I'm open to hear thoughts and opinions on best markets in those 2 states (or any other promising markets based on the criteria I outlined above) that I should focus on as a first-time investor.

Based on these circumstances, and also just in general, I'm wondering how investor-friendly agents out there approach sellers that have a home that is too overpriced for a fix-and-flip situation? 

The build costs have to correct or the land prices do, we don't have much of this inventory on the horizon either with the general plan.

I have decided to purchase the property from the land lord and i would liek to know if the following asks are heard of or used:1.

-Taking 10% reserve for vacancy, PM, and Capex-5% for repairs -All other numbers are standard values based on my area.

The difference is the land and finishes.

Interest rate and insurance cost in Houston will make house hack harder now but it is not entirely impossible. for particular Indepdent Height, arces homes, and highland height is a great area that is growing in my opinion. 77021 near medical center has some really nice streetLook for home that has garage apartment, duplex or big land to put up additional structure later on. look for area with low tax rate and no HOA. plenty of them around