We could see less homes come on the market as well as duplexes that sit for longer periods of time before going into contract.

That bubble will burst in a very legally challenging way for people who follow that bad advice.Second, you have to be in a position to handle a Due on Salecall.Third you have to be in a position to make every payment on time even if the property is sitting there vacant.You have to know why you are buying the property and what you are going to do with it to be cash positive without question.There are other things but that is a start.

Also my cash from the sale has been sitting in a 5% money market.

Most of the people on BP that I see in the forums don't have tons of cash sitting around

If your sitting on a lot of equity and the COC of that equity is less then 5% I would sell.

You may be allowed another use besides residential, however you need to confirm that with planning department where this property sits. 

You could go with a cash-out refinance to pull out funds, but you'd be sitting on those funds for a bit if you aren't looking to purchase a new property until next year which isn't ideal.If you aren't looking to pull money out on this one then you would be fine.

LOL.. like risking 100's of thousands of dolalrs on a rehab project is nothing... that's the problem .. those with the attitude of they do ALL THE WORK and the money just sits back and does nothing.. :)  that is very nearsighted thinking and someone who probably won't get much going in the bizz.

Just sit back and collect commission check!

You need a great agent to sell the place for you and not allow the listing to sit for long periods of time.