@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).

At that point we hired an independent appraiser and the numbers came back good and the hard money lender agreed to use them.  

Agreed with @Andy Sabisch. 

I completely agree that luxury rentals need to offer more than just aesthetic appeal; they need to resonate with tenant expectations and justify the premium rents.

I've spent the last 3 years nagging the city to sell me a lot next to my property so I can install a driveway and they've finally agreed.

Tim - I agree!

She agreed to pay a $400/month pet fee on top of the $1,150 rent.

I'd insist that he find a non-related handyman or change PM's.I agree a huge red flag to me is 24 hours of labor.

I agree with what others above said, that having a reliable, honest and knowledgeable team is the most important thing...more so than perhaps the location. 

Ultimately I agree that responsiveness is very much appreciated, but you won't really know that until you start working together with the agent.