Educate yourself on how to handle marketing, screening, late rent, lease violations, etc.

I am not an accountant or tax professional so I would recommend talking to your account about what that means and maybe some strategies on how to reduce your tax liability

@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).

You don't have a property manager, because if you did they would be handling these duties.  

2.Are there strategies to reduce the required down payment or secure better mortgage terms?

They clearly had no intention of paying off the loan in October but sought instead to further reduce their loan balance during a time of the note holder's personal hardship.

One more reason why people should stop looking for the easy path to building wealth.Increase earnings, reduce expenses, save, and invest.

I also would like to reduce the audit risk due to large bonus depreciation. 

This type of deal can also help you minimize upfront costs, as you’re reducing the cash needed to buy the property outright by aligning the seller’s financial outcome with yours.While there may be details to work through, such as crafting a solid contract or ensuring alignment with any financing you bring in, these can be easily addressed with the right team in place.

Who is handling the syndication related to their raising money?