@Eric Andersen definitely put weight into what @Michael Baum wrote and do your own research on the city regulation/zoning.

(I lived in Houston for 29 years--last place was the Rice Lofts downtown.  

My Client has following Situation: 1099 Worker; Same Profession the last 8 Years2023 1099 Gross income $87,0002022 1099 Gross Income $134,000 Looking to buy a Condo, SF, or Multi-Fam, and rent out spare rooms & Apartments in the House. 

Itemized breakdown has ridiculous amounts for damages, thefts of toolboxes, medical claim, loss of use etc.

So you have to weight risk to reward.. and sometimes we have to eat one that we bought it happens..

Renting is the last thing I would do personally unless it is less than 12 months max. 

Cut your losses the first time they miss a payment and start the eviction process.

What are the comps selling for (last 3-6 months)in the neighborhood?

Evaluate the situation to see if you could have done anything differently to mitigate the loss and implement changes to your processes, but know that this happens and hoepfully just not too close together. 

For example, you could create a weighted structure where a percentage of profits is based on cash contributions, and another portion compensates for rehab or management efforts.Rent Payments and Tax-Free Profits:If you structure it as an owner-occupied property, the rent you pay could be shared proportionally, but tax-free gains on resale may only apply to your share, as you’d be the owner-occupant.