With a monthly income of $3000 before expenses, and a cash flow of $1350 after expenses (including $308 for the HOA) shouldn't I believe it to be a good deal?

No sense putting new carpet down that will get trashed, and replacing with new hardwood treads is very expensive (worth it for a flip, not a rental).

Given that the HOA fee for our half of the property is $750/mo, it is the largest monthly expense the condo association has.

@Sally Fairchild, A traditional reverse 1031 improvement exchange would be prohibitively expensive for such small amounts. 

What is the best way to accomplish this while limiting the expenses associated with accessing the equity? 

I have read a couple of articles that bemoan that homeowners in expensive locales will suffer, however little to no impact to less pricey areas and a net probable boost to landlords.Live in flips will certainly be less profitable if the capital gains exemption increase from two to five years! 

What are the rents and expenses? 

Each has it's own particular risk.All having a single tenant have higher expenses and are difficult to achieve positive cash flow.

In addition, they are either 100% occupied and receiving rent or 100% vacant and a big expense, where a duplex can be 50% occupied and when you have turn over or a non-paying tenant you still have some rent coming in.   

That makes perfect sense, but the problem we’re having here in South Florida is our multifamily are crazy expensive.