In the middle of a lawsuit with a 2nd position lien. 

If you’re in the position to buy multiple deals because this nursing home may get properties frequently.

I assume mountain towns are my only option for cooler in the summer without humidity. 

Many good rental options in San Antonio/New Braunfels area.

Value and rents should eventually increase to turn cashflow positive and build your wealth.You're next learning experience will be, now that you are out of day-to-day management, how will you be able to handle the inevitable expense challenges?

In option 2, your costs are $25k higher.

Depending on how far values decline is the difference between a partial loss and total loss. in essence its the same position of those who make second loans behind the first or third position when pref goes in front of you..

There are a few options(1)You can get connected with the larger wholesaler firms in the area (2) go through PCPAO site and skiptrace the buyers of similar properties as yours, (3) hunt down the agents involved in the sale of properties similar to yours or go to local REI meetings and pitch it to the investors there. 

Two best options are house hack or sell and acquire a 1031 property.

But there’s another option that’s often overlooked: mortgage recasting.