If yes, what was the outcome   Does the tenant owe any monies for outstanding rent, damages, utilities etc?  

I can certainly share some information regarding STRs in the Round Rock area and would love to pick your brain about your experiences in investing. 

What is the best way to utilize that capital?

I would look at ways to cut back your current expenses and pick up a side job.

And 5000 from family member.. biggest negative on this property is utilities are not separated and utilities are included, I spend an average of 350$ a month on utilities.. 1st floor rents for 1015$ second floor rents for 800$..

It is a pretty big project (gut renovation of 3 floors with utility separation) but he refused to put more people on it despite of our constant requests. 

@Eric Nelson I would add that any passive losses that you cannot utilize because of the AGI limitation you still will want to report those losses.

(I don't have an objection to buying somewhere remote and utilizing a property management company)Hold steady - don't do anything.

Plus it easily cuts with a vinyl tile cutter or utility knife.

I’d say it started picking up really fast in late 2016.