In a nutshell the 1031 exchange will allow you to sell the Houston property that has been held for investment and purchase replacement investment properties (SA is fine) and defer indefinitely the payment of that $30K in taxes and all depreciation recapture.  

@Joseph ODonovan - It's currently in our LLC name but I've had quite a few challenges with obtaining a commercial loan on another separate property I own that is in a different LLC name. 

Meaning they are landscapers looking for a job, a sales rep trying to sell something etc. 4-5 are leads that are already listed on the MLS and cannot obtain the number they want so they call a cash investor.

I'm considering obtaining my real estate license to help jump start my real estate investing career. 

This loan could be a regular cash-out-refi or you could obtain a Home Equity Line of Credit (HELOC) on it. 

A copy of the lease obtained during the litigation should also prove useful for demanding post-foreclosure rent from the tenant.

And you will get to defer recapture indefinitely as long as you do a 1031 exchange when you sell your property

I think it's fair to re-examine what the buyer presented to you as the condition of the property upon obtaining the loan.

Personally, I HATE the fact that we live under a regulatory environment in which a guy with a good investment or business idea can't shop it to some people and obtain risk capital without worrying about arcane issues of compliance and disclosure written into law 80 years ago when the world was a different place.  

A taxpayer is on qualified extended duty when at a duty station that is at least 50 miles from the residence sold, or when residing under orders in government housing, for more than 90 days or for an indefinite period.This change applies to home sales after May 6, 1997.