Admittedly our ROI standards have dropped a bit over the years but we are also focusing on better properties which have lower Cap rates.

Our prices are such that we fear the appraisals won't come through and we don't want to lower our prices.

Is the ROI significantly lower and impacted than areas outside of Houston? 

After pursuing several good buys in the last couple of months -- and losing them to more aggressive bidders, we decided to offer cash (at lower-than-asking price) for a multi-unit rental property in a small town, three hours from big cities, in another state.

This consisted of carpet, laminate floors and paint in the lower unit, countertops, backsplash, appliances, tile in bathroom floor and shower surround. 

Your finishes (due to ARV) will influence directly your cost, so the full gut price in upcoming areas will be lower if compared to a similar place located in a more "established" neighborhood. 2.

Lower than banks can offer.Since you haven't  mentioned the other son's credit, job, ability to pay- I'll assume he can't qualify.

This is some what of a lower income area but i spoke with local landlords and say the area rents fast.

Be careful with wholesalers, there are a few that offer "deals" they find on Zillow at a low price and add their fee to the sellers asking price or they offer you deals that aren't deals at all as they are offered at prices a shade lower than the MLS.

Especially if the property isn't that bad, it should be priced near market price anyway so it isn't likely they will lower it by 30%.