You Cap Rate calc doesn't appear to be correct. 

(c) If after a casualty loss the rental premises are partially unusable for residential purposes and if the casualty loss is not caused by the negligence or fault of the tenant, a member of the tenant's family, or a guest or invitee of the tenant, the tenant is entitled to reduction in the rent in an amount proportionate to the extent the premises are unusable because of the casualty, but only on judgment of a county or district court.

San Antonio is the only other Texas market to appear on the unranked list.Austin’s commercial real estate sector has benefited from an influx of companies, particularly in the tech industry, that are moving out of California.https://austin.culturemap.com/...

When you exit a deal, what normally ends up happening (like Tom Brady keep winning more Super Bowls) is that you go into two more deals (with now double the amount of capital) and you will likely find that with those new K1s you could result in you having way more passive losses you began with If you can see where this is going... yes, experienced investors with a lot of capital deployed might have 500k-1M+ suspended passive losses and have not paid taxes in years and do not appear to pay taxes for years!

And if we mail it how do we properly collect a certificate of service that will provide proof in court that we delivered the notice on time.Can we hire someone to legally serve the Notice?

From your posting it appears the tenant moved out a year ago. 

We had a class action suit against the city and got an injunction, it is in court still at this moment.

I saw that it appeared that there wasn't as much competition, you could still get away without having to put down 20%, and the winning bids were exorbitant over asking price.

Usually mediation is part of the contract or you need to take them to court.

The combined cost of the 60 hour course and test in Arkansas appears to be less than $500.