To clarify my assumption about current equity: most transactional activity in the area has been new construction and established neighborhoods of "better" quality.

I am having a doubt here, as this seems like active losses from the sale, whereas the property was a commercial rental property held > 1 year.

I never investigated further.I always questioned his recommendations because at the price/rent point he was advocating, the maintenance/cap ex would consume too much of the rent unless actively self managed.  

I will add, since it's colder now, wasps, bees, etc are not very active and either die or inactive. 

In fact many properties being shopped around by wholesalers are actually just expired MLS listings (properties that failed to sell on the MLS) or active MLS listings under contract by a wholesaler. 

There are a lot of active users in Houston that you should be able to connect with and meet at local meetups if you don't know them already from your experience.

Normally with long term rentals though, losses are considered passive activity losses and not released until you dispose of the property.

For non-primary residences, they have to follow all of the following rules to receive a permit: - the property must be a minimum of one (1) acre in size (designed as a precaution to disturbances)- The building standards of the underlying zone district must be met - Adequate parking is provided - Defensible Space requirements are met - Valid water and sanitation must be demonstrated - No more than five (5) bedrooms are in the dwelling As time goes on, they continue to become more strict on the rules listed above here, and are actively regulating it.

I've seen active pump jacks in the yard, but not sure who was there first...the well or the house. 

First off, if you have passive activity losses carryovers (unused losses from previous years) those losses wil be recognized to the extent of your passive income (gain) from the sale.