Hi All, Looking for a little advice here in terms of next steps and strategy.

The lease agreement clearly states that the "Security Deposit", and not "Damage Deposit", does not have to be returned to the tenant if all the terms of the agreement are not met.

You are the closest living relative and you have inherited $10,000,000.00 USD.What is your long term strategy?

Doesn't seem like it's a great "hold" on the short term but I do think it would appreciate and would increase in cashflow with how you described it and the layout.

Long story short, it's been poorly managed for the last five years.

Bought it because the location, price, and other qualities made it stand out as a great property to have a long-term rental when I leave the area.That day is coming soon.

I bought a house in Dallas for short-term rental.

I currently have two mid term rentals I have been renting out in Dallas for several years now, and find myself having issues with one of my renters. 

This is not the same as a conventional loan where estimates are many pages, sent before day three, resent when you lock, and again before closing to protect a consumer who probably only does a mortgage loan a couple times in their life.Hard money and business purpose loans send an email term sheet which generally tells you the rate and points which can change after the appraisal and details become real. 

Any market can work, you should consider a market that you have some 'competitive advantage' compared to others.Think of an area that you grew up in, went to school, visit friends / family, visit often, best of luck.Also, do you have any experience in rentals / short-term rentals.Air-bnb's hosts have become 'commercialized'.You will not out-perform a host who has years of experience, does this 24/7 and has a team of support.Best of luck.