Best plan is to sell the land, invest the money and live off of the income.

You have no info here to make a decision off of.Your ranges of numbers are worthless.  

As we all know inspectors can be your worst enemy, they don't have to be your friend but you want to stay off their immediate radar..Code upgrades are usually only required if you pull permits.. to do upgrades,, but if for instance they do a yearly inspection and find you need GFI outlets in bath and kitchen you'll need to comply and get it taken care of.. along with what else they pick out that needs replacing or repair, once the door is opened up they have the right to write fix it orders until it's in good enough shape to comply with living standards.1. parking for your tenants.. forcing to register cars..

It's going to very greatly based on your exact goals.I recommend starting off by reading The Book on Rental Property Investing by @Brandon Turner.

It is so frustrating to see people take advantage of the system and live off of others hard work and hard earned money.

If anyone has any insight I would greatly appreciate it, otherwise I plan to consult with attorney or am I off in the mechanics of the transaction?

Then I settled in for the long task of really reigning in my budget, improving my credit score, and paying off debt.  

In this case you'd either need to pay enough to pay off the mortgage--in other words, pay full price--or pursue a short sale.  

It throws me off sometimes when I forget to click on the property and look at the sale date.

He was also able to get the paint off and only if you look veeery closely at certain areas can you tell that it had ever been painted.