Houston's main industry is oil and Gas, shipping,. 

Sure, you could look at your legal options but my guess it that would be a waste of time and money.There are other fish in the sea. 

I ran into something similar with a flip that had an oil burner, and the oil soot was circulating in the house due to a bad burner.

Wow....this charges are ridiculous..... when I see that type of stuff I truly think the PM is "fishing" and hoping that the tenant will just concede since some may think they have no rights and wont put out the effort to fight the charges.I had a landlord do the same to me when I was a renter.....

With oil drilling ticking up, the skilled construction worker type will be choosing whether to work in the oil fields or rebuilding Houston. 

If not, plenty of other fish out there. 

These are the 25 people that will have first dibs on the deals we get in the pipeline.I love the concept and believe that it will be a well oiled machine after this first major deal..

The land was once oil-producing and I believe it has shale deposits now.

So if back that out of each payment to get your new interest rate and if that is not enough return, keep connecting with this note seller, he may reduce his price sometime in the future, and then again, he may not . . so keep fishing.

You could refi your 50% equity property to pull out more cash and use that and the $200k to buy more rentals or to invest as you like (Crowdfund, syndication, stock market, oil, metals, start ups, etc).