Pay the bill yourself, then reimburse yourself by charging the tenants based on a formula.

I will say the until that hadn't paid did end up doing so, but that concern would be there for awhile based on how he started off. 

My initial thoughts would be to secure a construction loan for the total rehab amount based on the entire property's ARV.

Yes we are all based in Austin. 

Calculating the depreciation base, typically guided by a CPA, is the primary complexity.Except figuring out the depreciation base to use (what amount from the total acquisition cost goes for land and can’t be depreciated, and how much goes for the building/improvements to be used in the segregation and depreciation calculations, and even that should be an easy answer to figure out or get from your CPA), the rest is simple stuff your CPA will not know anyway (thus him sending you the “survey”) like, the sqft of the house, the length of the fence and if wood/iron/brick, how many ceiling fans in the house, how many cars garage, if carpet or tile in what room, etc.

Obviously, I don't know anything about your finances, so for all I know, you may have a few million in the bank, and this project is just a fun experiment that wouldn't even be a drop in the bucket if it all turns south...but, regardless, you'll want to model out what would happen if this project crashes and burns...As you may know, managing a rental in a D to F area (or even a C area) is usually not recommended (for many reasons), and funding a rehab with credit cards is also usually not recommended (again, for many reasons). ...even highly experienced investors often won't touch anything lower than C grade because of all the difficulties of managing and re-selling them...If you're dead set on rehabbing the place and keeping it, I'd strongly suggest studying up thoroughly on the local rental market and tenant pool (e.g.; rent medians and lower and upper bounds, typical days on market before securing a tenant, local vacancy rates, tenants' typical income, education level, employment opportunities, credit, and rental history).

Based off experience can you provide some recommendations on if this is a good idea and how to address his rent in this situation?  

Prices in Seattle dropped 20% since rates went up.

Seems like the market value they are using might be low based on the minimum bids listed.I was looking at a property with a min bid of $35,000. 

If I lease it, what is a fair CAM per sqft Landlord shall charge beside the base rent in Triple NNN lease?