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

Second, if you can afford to lose $30k by not suing, then you can afford a few thousand more on a reasonable attorney to get the process started and see if you can collect some of what is owed.

This is why the spreadsheets that analyze real estate investments include lines for vacancy, all expenses, taxes, capital expenditures, etc. so that you can be very certain that the asset can pay the loan payment each month and you don't lose sleep.

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?

Thats an easy fix DSCR all the way we do not look at income or employment.  1031 allows you to move the funds into the next property tax free. 

The net proceeds would be the actual amount you received after deducting the payment to the program.It's advisable to consult with a tax professional to ensure that you accurately report the sale on your tax return, taking into account any payments or obligations associated with the program.

The net operating income (all expenses + taxes + insurance) of 12k sounds about right if this is an all-cash deal, but if financing is required, which is 25% down + CapEx, that beautiful 12k operating income shrinks down to around to 1.5k operating income which translates into $125 of monthly cashflow, and this is what gives me the 4.5 CoC that I was talking about.

Also, I have found errors in my last years tax return and I guess I need to point them out to him?

If it's too thin that a property tax or insurance hike takes you too low in cashflow, it might not be worth it.Good luck!