Figure out how many sales you need to break even.

You are essentially doing a partial sale of your home.

We decided to do a full rehab to get nearly double the rent ($2900)and increase the ARV to $260k.  

I think it's about the best time there is to outside of the past to invest and acquire properties.I just recently found an article by Julie Taylor from realtor.com that was posted December 10th that has some predictions on housing markets where "Home Sales Are Set to Soar" with Colorado Springs listed as number 1 with expected YoY sales increase of 27.1% and Denver expected to increase 13.6% YoY quoting Christine Dupont-Patz who is a real estate agent in the Denver area. 

Seller Pre-Sale Financing: Consider selling the tenant-occupied property "as-is" now to an investor, perhaps at a slight discount, which could save time and eliminate renovation costs.

BUT I have also heard that it could trigger a due on sales clause, bringing the note fully due at any moment.

If so, you will need to apply for a change of number of bedrooms on the standard CHA rent increase form.

My property is in 5th ward but in a more gentrified area with several new builds on the street that are occupied and 4 more being built on the street that are all for sale.

LouisReleasing Federal Land for private sale? 

The median home value in Phoenix as of April 2023 was $368,657, which is a 23.5% increase from the previous year.