My lender told me that how I did my taxes lowered my income dramatically which would have prevented me from buying the duplex.

The interesting thing about Phoenix, because all the houses look the same, you can't tell the difference between lower income and the middle classes.

on that money (ie 25% x 2/29 x the lower of the fair market value the day you transfer it or your cost basis (ie bought price plus rehab costs when you were living there).)

(I dumped my original lender) We closed on time.The violations weren't an issue because they didn't come up on the title or appraisal, already in the process to get them rectified.Now, need to start thinking of how to lower that rate and roll the 25k worth of capital improvements into the new loan. 

I'm thinking if current tenants are paying slightly lower than market, I could negotiate down the price but still cash flow to cover my expenses. 

I chose Wilmington because the property taxes are significantly lower than Philly and it was closer to our family (we are house hacking this triplex so the location to family was important).

. $100k gain right now is tax free, If you simply sell.....you’ll lose that if you redevelop it.Builders know how to do this, and their cost for doing it themselves will be much lower than yours.  

Then when my potential tenant turned in her voucher I was offered a much lower price, even before any inspection, so I told them to pound sand.

Only the lower price homes are seeing it. 

What would you suggest getting price under 50k or just lower asking to get rid of it if possible?