@Dominique Coffin,This is much more common in our current interest rate environment. 

There's no reason to jack up tax rates just because a house is used as a rental rather than a primary - all it does is inflate the rent at the renter's expense. 

Negotiated 20k off the top without contingencies as already walked it and report didn’t show anything I didn’t already saw.

I personally think out-of-state investing is a top choice.

I've seen online that the housing market in Dallas is tricky at the moment and that interest rates are expected to remain the same for 2024.

As for the 1% interest rate - the IRS has an Applicable Federal Rate which needs to be used for Federal Tax purposed.  

My friend believes that the PM was not staying on top of the yearly inspections and the PM was happy just to pay the tenant with my friend's $$.

Sometimes you get a lender who will be more aggressive on the rates. 

After doing this, I then run the property through Airdna.co and/or Mashvisor.com Both of these tools will give you projections of what type of rental rates, price per night, bookings, occupancy, seasonal variations, etc.

If you want to get top dollar, do your research on what similar homes sell for nearby.