I bet there’s only about a 10% success rate .

Do it and my bet is that it will be your last RE investment.Why do I say this?

The taxable gain is calculated as the difference between your net sales price and your adjusted cost basis (original purchase +capital improvements - depreciation).Depending on these factors you could actually have a much larger (or smaller) tax from the sale. 

Ask the seller how you can use the feedback to adjust the listing.Let other people deliver the feedback and let your client make their own decision about how to move forward. 

Your best bet would be to put 3.5% down with an FHA loan. 

Downtown district is so expensive but Gulf Hills is a little better and seems like a good bet, especially with the new owner of the GH Hotel. 

The most common portfolio style loan in Texas is a 20 year adjustable rate loan.

Either way show the inspection back to the seller with estimated dollar amounts for repairs and see if they're motivated enough to repair or adjust price accordingly. 

Again, this should be a talking point when promoting your home and if your market allows for a higher rent because of this then feel free to adjust accordingly.

You will have to adjust your mindset to being achievement based and not "having" based.