Time, which I find much more valuable than money.

Capital gains are russian roulette at its worse - lose on them once, and the five times you gained on them may not mean squat.

Otherwise, I'd rather be taxed at 15% capital gains + a few $9.95 trade fees at Scottrade, and no penalties if I completely exit, instead of taxed as ordinary income (close to 50% ?)

In my opinion, an assumable loan at 5.25% will be a valuable commodity during the term of this loan.I don't know if this type of situation is available for you on your property. good luck.

Of course the banks used it for their own financial gain instead of lending it out like was suggested to them.

I also read through a number of legal articles, paper, the Texas Property Code, etc. and I can't find anything specifically relating to how we gain an interpretation of this from someone empowered to do so.

If lower -- say 10% -- then you would be looking at a value close to 270k.Your real profit, of course, is the difference between what you can sell it for after re-hab (net costs of sale such as commission, legal fees, conveyance tax and also cap gain tax) less what you have into it -- purchase price, rehab costs, and all carrying costs during re-hab (such as mortgage interest, prop tax, insurance).

And usually you will be able to gain access to such list at no charge, you just have to call the city up and ask for the "code enforcement" department (as it's usually referenced regardless of city).

I haven't used them to date but I'm told they are valuable in getting properties...

What an incredibely valuable find, biggerpockets.