After being in the corporate sales world for about 10 years, I realized that I do not want to return.

And you would get to indefinitely defer all tax on the gain from the sale.

The goal is to slowly build a real estate portfolio and get to a point that I can eventually sale my business. 

@Shawn Questa I agree with you that there could be some opportunity here, but personally, with that little equity in the property, I'd wait for the pre-foreclosure process to start and  perhaps you can do a short sale (though I don't know the details on how that's handled in TX).

@JR Gonzalez, You can allocate the proceeds from your sale anyway you want. 

The worst is when a friend does a DIY sale then calls me after closing asking if they should sue the other party (usually for failure to disclose a known issue/ misrepresentation of the property/ they feel like they overpaid/ buyer's remorse).

I have a property listed for sale in Goodyear, AZ and it carries a 2.25% interest rate.

Currently we are seeing STR owners posting for sale due to reduction in prices they can get per night and the vacancy rate increasing. 

The proceeds from the sale will probably go toward rehabbing Lot 2 and sell it for more.

If not, what are property tax sales?