I have not yet encountered a tax year where I've had to work through and claim income for flipping, but that is coming up in a couple months.

If you use a payroll company to capture payroll taxes and all..

Or is this the government trying to catch you on discrimination based on source of income?

If your not paying tax's not sure what additional write offs are going to do for U..

You will purchase a specific property in a particular location, governed by local rental regulations.

check the tax records

By being outside the city (the city line is a few blocks away), you save on city wage tax. 

my monthly income barely breaks even with taxes mortgage etc..any advice is appreciated. thanks

I can put down 25% considering this will be a secondary home.Reason for considering SFH - No prior RE experience, Tenant Class, Newer construction - no existing problems,newer townhomes are priced starting at 420k$'s ( higher HOA and still has a shared wall) Looking at 4000$ max as monthly expense( mortgage+insurance+HOA+ Property Tax ).I say expense , assuming the residence is not occupied immediately (Vacancy) .

I am 100% Disabled veteran so i don't pay property taxes, God I love Texas, but will that apply to the second home too?