I’m looking for some advice on how to proceed with purchasing my next rental property.

When I informed my land lord that we were trying to sort out other living arrangements they said that we still have to pay the full amount or go to court. 

You have to file an eviction at the court.

Or should we start proceedings to seek a money judgement?   

There were times in Austin when some sellers brought money to closing because the sales proceeds did not fully cover the loan payoff.

It will be easiest to have your agent paid at closing from seller proceeds. 

I have to take her back to court for the back rent and damages, but at this point I’m happy to have the unit back. 

On the off chance they did proceed with redemption, they'd have to reimburse you for your purchase price, plus interest, and other allowable expenses.  

The code inspector stated that I still need to have the violations corrected or he will send me a summons to appear in court.

Of course I asked him before if there was anything that could prevent sell he said no now he has to go to court because if these violations are not fixed on the property it could prevent it from being sold.