BiggerPockets is an amazing platform and inspired me further to dive into long-term rental idea.

You get the idea. 

I had no idea it could be thought of like that, but it makes sense when put into that context.

If you are setting aside funds for capex, taxes, insurance, or other expenses that don't occur monthly, transfer those funds to Savings each month and hold them there until it's time to spend them.

Or should I just hold & continue making major repairs/dealing with headache tenants?

Does anyone have an idea on what I can do?

So absolute worse case scenario if they say it has to be torn down I still have the main house which should hold the value. 

My concern is if it is a good idea to get rid off carpet, will it be appealing for renters in Texas.

@Ade Akingbade so, you jumped in without looking and you're now in over your head.You bought someone else's problem without a clear plan to turn it around.Highly recommend dumping this property and taking whatever loss you have to.Otherwise, you will just lose more money trying to fix this situation when you have no idea what you are doing.Bring your funds to Detroit - which is growing!

Investment Info:Single-family residence buy & hold investment.