Also, a state law went into effect putting a cap on "non-exempt" properties tax increase at 20%: https://comptroller.texas.gov/taxes/property-tax/valuing-pro...

Why not sell, since you have a primary exemption for cap gains, and buy a MFH in the city you like? 

Just a couple of thoughts, if you live in the home 2 of the last 5 years you get a tax exemption on the sale.

Also I am 100% Disabled veteran are both of my properties exempt from property taxes or just one?

HML are exempt from the rules you state.. those rules are for NMLS registered and licensed lenders doing owner occ or Freddie fannie backed mortgages..

This is an example of the fee structure in my state of PA :(some real estate transfers are exempt from realty transfer tax, including certain transfers among family members, to governmental units, between religious organizations, to shareholders or partners and to or from nonprofit industrial development agencies.

The securities exemption for multi-lender (fractionalized) loans is only available to CA licensed real estate brokers. 

Quote from @Dave Foster: How would a 1031 exchange benefit him if he can sell today using the owner/occupant exemption? 

According to the Fair Housing Act and the Americans with Disabilities Act:Even if a landlord has a no pet policy in place, the law does not consider service animals as pets and therefore the service animal is exempt from such a restriction.Service animals are allowed anywhere a person would go, including food areas that would normally restrict an animal’s presence.Landlords cannot charge a pet deposit or pet fee for service animals, however the tenant is liable for any damage that the service animal may cause.Landlords can require written verification from the tenant’s health care provider that they are disabled but cannot ask for any specifics about the disability.Landlords can require written verification from the tenant’s health care provider that the service animal is needed.Landlords can request copies of the animal’s health records to prove the animal is in good health, parasite-free and immunized/vaccinated.Landlords can write warnings or even evict a tenant with a service animal if the animal is disturbing others, posing a threat to others or causing considerable damage to the property.In other words, you can ask for appropriate paperwork concerning the tenant’s need for the service animal and to verify the animal’s health. 

Certain types of SEC exemptions don't allow them to advertise to the public unless they are for accredited investors only, but for Reg A offerings they can.