@Mike H. keep in mind the reason for the "no renting" rule in the HOA is the occupants perception that rentals will decrease their value or will not receive proper upkeep.

@Mohamed NagoorDon't forget to count the expenses(costs) that you pay at closing to decrease your ordinary income on sale(Title fees, transfer taxes and real estate agent commission).

. - You have owned the property 12+ years and the value has decreased?

However, the new tax law does not allow you to carry it back.Other than that - Cost segs can be a great mechanism to decrease your tax liability

If his finances are not involved in the project, then he doesn't risk anything while you are risking your savings, so think about how you can decrease this risk.

However, inventory remains incredibly tight, with only 1.7 months of inventory in Austin and 2.4 months in the greater Austin area (a balanced market is 6.5 months).Steve Crorey, 2018 president of the Austin Board of REALTORS®, said, "In the Austin-Round Rock MSA, price classes across the board are seeing an increase in demand with a decrease in inventory. 

Think about a few things when considering investing in upcoming cities 1) Current or future infrastructure projects 2) population shifts over the past 3-5 years and projected population increase/decreases 3) research the area on municipal websites, blogs etc see what people are saying about the area and what local governments plans are.

But then I refinance for $120,000 which would free up approximately $55,000 which is great, but then decrease my cash flow to only around $250/month after refinance.

You can do this through increasing rent, or decreasing expenses.

Paying myself a rent should help me realize some depreciation and decrease my tax bill, since my commercial building on it's own is not generating any income currently.