I understand that I'll need to add value to my mentor in order to make the relationship win/win.  

Winning the game means picking the investment alternative that pays the most in total.  

You will eventually win. 

Do a counter claim for the fire damage caused by the tenant, just in case you will be told by the court to pay something, the counter claim will help the court determine final figure, they will decide how much the tenant will owe you also, ie if the court sya you have to pay the tenant 3k, then if your counter case wins 4k for the tenant pays you 1k, something like that.Consult with a lawyer when you do something, pick their brain so you will be ready to defend yourself.Another option is to have a paralegal look at your paperworks before appearing, much more cost effective, specially if they work on a lawyers office and don't run a paralegal business.

It's a win/win- We save upfront $ on acquisition/closings....

You need cash, credit and some experience to win in this game with any consistency.

@Tyler Nelson - Its really a win-win if you are open to both strategies.

One recommendation: check out the properties going to auction before bidding and check with the county or a title company to see if there are any clouds on title that may jeopardize your right to ownership if you win the bid.

(Don't like this option much because of the cheap mortgage I have now)In my favor, I am renting now, so almost any option will be a win if I buy in Houston.I don't like ultra aggressive approaches, learned that with the BK.

In that case you should follow Ron's advice and bid at the auction or make an offer to whoever wins the auction.I hope this helps.