I would respond and mention those exact things that you've written in your post but also include any supporting evidence you can find as it pertains to the property.

Also, any feedback on this area pertaining to cash flow and solid investment area? 

My question (we are newer investors) pertains to tax implications and depreciation. 

Any recommendations for a beginning investor, mostly pertaining to building local relationships and networking in the Houston area.

One of my background check resources regularly offers classes and newsletters that pertain to landlord issues.Meetups are also a great way to learn more about being a landlord and investing.

@Crystal Smith Hi Crystal - I've been wondering about something you mentioned and did ask an Architect over a virtual meetup but didn't get a super clear answer as it pertains to the ADU Ordinance. 

@Bob Bevis I'm only answering your question as it pertains to a zoning change. 

I found this online: “When planning the size of your house, the building codes to keep in mind are the ones that pertain to minimum size requirements of specific rooms or ceiling heights.

In addition to what @Nathan G. said regarding the Adverse Action letter, here in CO we are also required to send an RFDL (Reason for Denial Letter); it covers reasons not necessarily pertaining to credit. 

Also find a great realtor on BP who can answer questions pertaining to FHA process & can guide you to possible investments that fit your criteria.