It was a trap house but the lot was too small for larger investors to build new.

Don't fall into that trap.  

We feel trapped with no exit strategy.

@Ivan Chavez if you really want to go above and beyond: clean out gutters, inspect all appliances (or at least those you provide) ice and vinegar in the disposal, check stove elements and use oven cleaner, run vinegar or bleach through the washer, vinegar or bleach in the dishwasher, clean the dishwasher strainer, check light bulbs in vent hood and change charcoal filter, electrical system check-make sure gfci work with a tester (not the button), check all bulbs, fans, and outlets, plumbing check for leaking toilets, dripping p traps under the sinks, you can also check resistance on electrical water heater elements to make sure they aren't busted.

First time this happened outside of putting out some traps.

If not, am I trapped paying capital gains of every dollar that comes in from the sale of the lots? 

Ideally we trap $0 of our investment on a ~$1m ARV (ideally we get some cash out on the refi) and conservatively STR rent for >$12k/month achieving an infinite return. 

You want to make sure you have a solid foundation so you don't make irreversible mistakes, but you also don't want to fall into the paralysis by analysis trap. 

I'm also concerned about the crazy sellers market...don't want to fall into that trap 

Also, with regard to the Property Management, I would advise you to not fall into the trap of not factoring this in for two reasons:(1) Even if you manage it, you could pay yourself the PM Fee as payment for your time spent on the management of the property; and(2) If you ever decide to hire a PM, you already have that factored into your numbers and so you can be confident that the numbers still workThe biggest tip that I can give you is don't handicap your income potential by failing to account for the base expenses that need to be considered when assessing a properties ROI.