@Shawn Questa I agree with you that there could be some opportunity here, but personally, with that little equity in the property, I'd wait for the pre-foreclosure process to start and  perhaps you can do a short sale (though I don't know the details on how that's handled in TX).

They will schedule an inspection to verify that the second bedroom does in fact exist in the apartment.I am not sure, I believe it’s because this apartment is only being rented by one person on the lease.  

I was the first person to partner with them. 

That is my personal go to.

The biggest mistake I see out of state investors make is relying on others too much for direction and guidance instead of doing their own due diligence and building their own team that they actually meet and interviewRelying on one person who alleges that they have a 'team' built already that you can use as well can be a costly mistake.

Personally I would want to manage the rental myself at least in the beginning to make sure you get good ratings.

Better option for personal use but perhaps not rental. 

For me personally, our STR and our little inn provide more than half my family's income so I feel I have a fiduciary duty to my wife and kids to maximize that. 

I 100% agree with the intent aspect and that is an important premise, but the fact is in this particular situation intent for it to be personal use has been confirmed (by way of a public post).

I actually had a fire MYSELF, yes personally.