Such as selling for a lower gain than you want, or renting it out.

Finding reliable GC's in Houston is already tough enough as it is, and the insurance work (depending on their level of payouts) could very well become the priority.

First, you must select an exemption at the state or federal level that allows you to do what you want to do, such as Regulation D, rule 506(b) or 506(c), or an intrastate exemption (where everything – you, the property and your investors are all in one state).

Prices seem to be stagnant or perhaps slightly lower than a year ago? 

I had a seller this year in a multiple offer situation reject a higher VA loan offer in favor of a lower, but otherwise very similar, conventional loan offer due to a very minor worry that the property wouldn't meet the VA minimum property standards.

There is a certain risk insurance companies are covering you for living in your home, which is not the same level of risk as inviting guests into your home on a routine basis. 

Maybe getting a high deductible or lower coverage may get the quote lower. 

Find a multi-family in an area turning around or going strong and it's worth 10 times the sfr.Sure you can possibly get good cashflow on a lower end multi in a bad area but you have to consider your exit.Don't let the fact that we're in a tight market force you into a property you will regret in the future.  

In my area it's steep driveways, tuck under garages, small bedrooms and closets, 1 bath (and small), tight kitchens, steep stairs, 4 level splits, train tracks, etc

You're selling for $45K so your gain will be around $17600 (you may have some costs of closing that lower that figure).In order to do a 1031 you must purchase at least as much as you sell or pay tax on the difference.