I also think your annual insurance of $700 is light for the price.  

Also, I forgot to mention, I just found out there is a $1400 lean on the title, so who pays for that and is there a way around that?

Do you mind sharing the taxes and insurance numbers on your Texas properties?

Your able to refi the day after you take title .

As a matter of fact, I usually have to waive title and inspection contingencies as well to have a fair fighting chance.4) I usually get 3-weeks to close.

Primary is your primary.the duplex is a partnership nothing wrong with you guys simply taking title as Tenants in common as to a pro rata share ownership.. you each have to qualify and sign the loan docs...

I have everyone else lined up as far as a lender, title company, attorney, contractors and a huge amount of leads.  

Purchase would be from the R.M. but you would need to verify the owner is no longer in residence (both parties).I would expect all RM's to be underwater and thus never expect any margin left for FMV sale even it you obtained title.

How much is utilities, taxes, insurance, etc? 

We just had an offer in the bay area that was close to if not lower than others because it was cash, 10 day close, 5 day inspection, we also took all closing and title costs.