When they leave, you will need to re-rent at market price (which may be lower if the supply has recovered).I would not feel guilty charging a fair price to market in this situation. 

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Below are cliff notes that provide a timeline of the issue. 10/2018- I buy and close on the unit after it passes inspection. 11/26/2018- After a rainy week in Washington state, I notice some dampness in one of the rooms that shares a wall with the outer structure.

Ie the purchase price is below the tax value Kris-  As Texas is a non-disclosure state, they do not have access to the sales price.

See example below for one where a bathroom was added.to Get licensed in Dallas as a GC, you just go to the city and pay the fee, and then pull a permit to do demo and rehab. 

The price was 330k, 20k below what my duplex appraised for earlier this summer and the seller agreed to pay most of my closing costs.

We got the house at a reasonable price below market value and hope to make a fair profit as we upgrade it!

Yes - your share of income/losses passed through to you will be income less expenses which includes depreciation.A simple example below is you put $1,000 into a deal for 5% interest of a real estate deal.

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Here are some recommendations for you:Find and connect with other BP members that are in your area: https://www.biggerpockets.com/search/usersSet up keyword alerts to be notified of the topics that interest you: http://www.biggerpockets.com/alertsRead Beginner’s Guide: http://www.biggerpockets.com/real-estate-investingCheck out BP Podcasts: https://www.biggerpockets.com/podcast If you wish to tag someone in the conversation on the forum, type @ followed by their name and then select the name of that person which should appear below the comments box.