I think Capex, repairs and vacancy are going to eat up all your profits on this one unfortunately, as there is just not enough gross rent here to keep up with the expenses involved with maintaining a property.

I strongly second the words of @Aaron Gordy, those short term gains can eat into profits quickly on flips.  

Water cooler chats eat up what should be productive time. 

I'd like to make sure their first week goes well, but OMG, this is eating into any profit I might get and is starting to annoy me.

Also, since you mentioned you're an out of state investor, be aware that property taxes in Texas are quite high and can definitely eat into any potential cash flow.

Save your money for now, and keep adding to your nest egg as much as you can afford every month.

That "Discount broker" will either be eating the fine or has verbiage that pushes the cost on the owner.

All you talk about is beds, but can 12 people sit down comfortably to eat together at the dining table, or sit around the TV to watch a movie?

The first question I'd ask is whether it's an amount you're willing to eat because already they don't sound like a legitimate lender and I'm not sure how interested I'd be in working with them further but I certainly wouldn't rush to find a property just because you made a bad decision to pay a lender upfront and thereby compound your problems.

If it is largely cosmetic, then it will probably be less, if it was a house fire or has foundation issues, it could go higher.The transaction costs eat up a lot as well.  6% commissions plus the states piece of the pie 13-15k on 200k.