Wix tools can be used to generate msi installable packages, .exe setup bundles, .msm merge modules, and .msp patches. Getting a wix project built with visual studio is fairly simple. If you are using VS you can install the extension from marketplace and install wix tools to get going in the development environment. Tools available for VS 217, 2015, 2013, 2012 and 2010.
You can setup TFS builds to build wix projects following the instructions in http://wixtoolset.org/documentation/manual/v3/msbuild/wix_with_team_build.html. There is more detailed documentation available in http://wixtoolset.org/documentation/manual/v3/msbuild/. The blog here also useful http://programcsharp.com/blog/post/building-wix-with-msbuild.
However, when you are running a build to package .msi etc using wix project you might notice the build sometimes hangs forever. This happens because of a deadlock when msbuild and wix waiting on the output stream.
To prevent this from happening pass the argument below to build arguments.