I feel like this may play a factor in how willing the county is to just get the property "off their books."

I don't back on appreciation plays, but would never buy where I know there won't be any appreciation, unless that cash flow was just amazing.

I suspect there IS a tax play to be made with mal-investments, but I think there are multiple reasons it happens. 

Furthermore, I currently own a rental property that in the case things start becoming bad in the near future and I have to sell it, I would have more buffer to play on pricing as I would not need to pay commissions to a selling broker. 

Won't play by the rules of common decency you say?

We were fairly certain it would take 9-12 mo's to rebuild their house, and that's exactly how it played out.From the tenants' perspective, it turned sour b/c insurance stopped paying after 11 mo's even though their new house wasn't ready. 

Now, if one works from home but their job is in another city, how does this situation play out?

If he sold, that is quite of bit of money to play with and your father could pay off his bills and be set up for retirement and maybe have some to leave over! 

Lubbock is a decent play and has moderate cashflow and appreciation.

Play close attention to the insurance policy as to what is covered after a potential occurrence, and replacement costs.