Take a step back at evaluate how our generation functions.

Great to see you take that first and maybe most difficult step in real estate investment: reaching out on BiggerPockets.

Fortunately I took a step back, implemented a number of things that would conserve heat and water, and I am far better for it because the old costs were built into the rents.Now, I live in a house whose water is controlled by a utility and I receive monthly bills like electric and stays with the tenant.

In many counties, like where I live in Jackson County, they will reduce the assessed value of a property that is dilapidated or bought in foreclosure or whatever for two years (if you challenge the value based on your purchase or other info).

First step is to look at the lease since you have a non-standard, possibly non-Texas lease.

I located the buyer, he is flat broke and has no way of paying his loan payments. if a initiate a non judicial forclosure do yes the house go up for auction on the courthouse steps?

There you get into financing challenges, sometimes getting it "as is, where is", sometimes not being able to get into the home before bidding, etc.  

It's 25k above what I originally wanted to offer but the numbers still make sense so I was willing to step above that because it's cash flowing currently.

I am not saying your tenants should not be held responsible (but if they challenge you, you need to have documentation).

Ive done a lot of reading and listening to podcast and finally wanted to introduce myself and take the step of becoming an active member in the community.