If the house has increased a lot in value, you may want to sell to avoid paying capital gains on the profit.

This AI solution is much more profitable than traditional marketing channels like PPC and SEO, and it feels like having a virtual assistant that never stops working, ensuring we don’t miss any potential leads.The system is capable of having natural, engaging conversations with real estate agents, helping us secure deals such as seller financing, subject-to agreements, and cash offers.

It wouldn't be a way around the regs.Sell would be something if you would make a decent profit and could find something to replace it.If you convert it to a LTR, could you absorb the expenses?

If the lender keeps the property can they offload it for a quick profit or will they be stuck with a project that will cost them more money than what its worth if the deal did come thru.

What I am saying is maybe your go to guy for plumbing is making a reasonable profit and not gouging you- perhaps???

In an ideal situation, you and your aunt would each pay back your fair share to your grandmother or each other. i.e. each of you share X% of your sale profits to your Grandma OR you and your aunt split the past expenses (taxes, other holding costs, renovation, expenses, etc.) with your grandmother and pay her back. 

Negotiation involved a thorough analysis of the property’s potential and local comps, allowing us to secure it at a price that would ensure profitability after renovation.

https://www.amazon.com/FLIP-Find-Sell-Houses-Profit/dp/0071486100If your unsure and your paying for the work to be done this book will give you a good general idea on what order to do things to save money and excess appointments from the same trade.

Profits aren't somehow ridiculously high, but our average cash on cash return is >23% across the portfolio.  

As far as the home, if you have lived in it for at least 2 out of the previous 5 years you will be able to sell it and take the first $250K of profit tax free.