But at the same time, the community has appreciated rapidly in the past 2 years and we feel will continue rising.We are just afraid to back out of this opportunity over $10K, but we are also weary as this could make our financial situation more difficult for the next year or so.

You need to look for the transitional areas, for example if there is a bunch of development in Grand Rapids MI, you might want to look in the smaller cites just outside Grand Rapids MI, in order to find good deals. 

EXACTLY  and land use attorneys are very specialized but worth their weight in gold if your in a very difficult complicated land use/highly regulated  City/County. 

I am placing a lot of emotional weight on the idea of owning two adjacent properties: one for my family, one as a rental.

But yes, taxes can get rather high in some Texas cities...It was an ok deal, but barely - taxes weight this down but for someone who could reduce the rehab, it would of been well worth it.

Additionally, if any had recommendations in the Grand Rapids area for a real estate lawyer or accountant that could help me in starting this process.

I have seen they are tightening up due to the economy rapidly changing.

Being close to the shuttle and Vidas might get you some college students if you're trying to rent, particularly if they're in soccer, field hockey or some other sport where the location would work in their favor.For an ARV my biggest weight would go to 316 N 41st St. 

Rapidly increasing area.

Interest rates are rapidly increasing and home prices don’t seem to be coming down any time soon.