If it becomes an epidemic, and it seems like you will indefinitely be low balling and never getting a house under contract, you might need to let them go as clients.

What I like about this strategy is that if you could find enough deals to make the financials work, you could rinse and repeat indefinitely and scale quickly. 

I would keep as a rental and try to acquire a portfolio of rentals that will cash flow and your tenants will pay off for you.If you do sell, utilize a 1031 exchange to postpone indefinitely paying any capital gains tax.That savings account is the worst place to park your money.

And when you use the correct process you get to defer indefinitely any tax you would have paid on the sale of the old property including any depreciation you would have had to recapture.If you just sell that duplex you will pay tax on the profit plus depreciation recapture - even if it is part of the divorce settlement.But using the 1031 exchange you and your ex husband should be able to sell the duplex and purchase other investment real estate (separate properties for you and he) and avoid all tax.I'll pm you with some resources.

@Nathan Diones is correct that he may not want to defer indefinitely and complete the exchange and be satisfied with deferring the tax until payment comes in. 

Now if you have the money or your parents have the money to pay the loan off if it becomes necessary, I guess that's cool.Also remember the risks of underwriting property assuming they can be used indefinitely as airbnb.

My thought and fear is that the 'state of emergency' will probably keep on getting extended indefinitely as we are going to keep on having fires every year, unfortunately.... so important to understand and fight if possible (especially if the price base is set at 2017).

We do plan on holding on to the property indefinitely, so I know the smartest long-term decision is to convert. 

If you own a rental property with the intention of collecting passive income indefinitely (of course who knows what the future holds) you should send your tenant:New air filter (if you have a HVAC) every X monthsGet the filter with the least amount resistance, meaning buy the “worst” quality one and send the replacement filters more oftenThe worse the filter the easier the fan has to work to circulate the airHigh priced filters trap more “stuff” but require more power and wear and tear on your HVAC unit.

No forms because the new council put the "residential homestays" law on hold indefinitely, pending revisions next year.