There is no way that a cat will keep it in the box 100% of the time so there was likely a cost to eliminate the small.

Provided you follow all state landlord tenant regulations state codes eliminates concerns over ethics.

So for a total of a monthly $350 additional mortgage payment, you eliminate: Oil payments, Gas payments, Electricity bills, Furnace maintenance, AC Maintenance, Chimneys sweeping, oil tanks, plumbing maintenance, etc. 

I guess I'm just worried because it eliminates one of my exit strategies (Selling) because I would owe more than it is worth technically.

@Dave Foster if you only do the 1031 exchange for the adjusted cost basis does that eliminate the tax liability? 

I would go with the FHA first because you plan to house hack it anyway because you are taking what is currently presumably your housing expense and reducing or eliminating it. 

My properties currently are managed by a property manager but I would like to move to managing them myself.How do you suggest I go about eliminating the management and introducing myself to the tenant and hopefully get them to re lease up again with me?

Also, some of the properties in Old Pearland was damaged by Harvey so there might be a further discount available.Is my thought process correct in eliminating Friendswood from my potential markets to invest in?

It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.Make sure your property manager is a licensed real estate brokerage.Understand you can not eliminate all risk, only mitigate it.

You can file it at any point in the year and the adjustment will go against future taxes, sometimes eliminating the next few quarterly payments or more.