I'm assuming you don't use them anymore? 

Also I assume Wimberley is still pretty tough on zoning I assume? 

I assume you are still a W-2 employee.

@Eric Huntermark Unless you're already independently wealthy, a conventional loan product (assuming this = bank/credit union loan), is going to probably be less attractive for you and most banks/credit unions don't lend to flippers.

I assume there is zero or almost zero appreciation and that’s the reason you aren’t selling tax free?

Also the property has a kitchen downstairs which I assume would be considered an adu already which would prevent a second adu if you were to convert the detached garage. 

I assume my name but reading about insurance specifics if there were a claim I'm wondering what others have done? 

When something goes into default, like this property has has, I have little to no control yet assumed a lot of risk. 

You have to complete Schedule E if you have rentals.You should check if the turbo tax premier version allows the filing of Schedule E.With that said, using a software like Turbo Tax will assume you to understand what is deductible.If you work with a tax professional, you are more likely to have an accurate return.

Depending on how long you have been in the first property (based on your interest rate, I am assuming 3-4 years), have you explored the option to utilize your FHA again?