He said he can go to court for adverse possession and force an easement from court.

-When I sold the lots, what would the best strategy be with the proceeds to avoid capital gains?

She recently lost a newborn baby and everything has been downhill since She has stopped communicating with me for over three weeks now, has missed her last rent payment, has let the house go completely to hell, and I just got a letter from the magistrate that I have a court hearing over the amount of trash in the backyard.I posted a 30 day notice on her door being that she is month to month.

A court ruling in Texas establishes that a tiny house does not need to be on a chassis.

@William Gogolla I think most investors would agree and advise that if the deal makes sense you should take advantage and proceed.

Anyone who believes that Austin is headed for a major correction or sustained lower prices in the foreseeable future needs a compelling and realistic case for how the Austin metro goes from 0.6 months of inventory to well beyond 6.5 months.I think the most likely scenario is that the Austin market stabilizes and proceeds in a more orderly and predictable fashion at this new pricing level.

This varies from jurisdiction to jurisdiction based upon court rules, but non-judicial sales are typically handled by a Trustee (or Substitute Trustee)... who signs the deed after the sale is ratified by the court and the purchase price is paid in full.

Another option is to get the seller to leave the amount of the repair in escrow and have the work done, then the contractor gets paid from the proceeds in escrow, and the seller gets reimbursed by the insurance company. 

And you must use all of your net proceeds (maybe $108K ish) in the purchase or purchases. 

Unsure how long you are going to hold it or how long you have lived there but I believe if you if you go to sell and have lived there 2 of the last 5 years you pay no capital gains on the proceeds from the sale. something to think about as this is a lot cleaner than a 1031 exchange.