I also know I can look at ways of borrowing against that equity (HELOC for example) but I also just feel like if I take debt on that property the cashflow goes down, and then if the association also takes the loan it goes down more, and at that point I don't know why it would be a better option than selling before August. 

Out of pocket, it is at least $1000 a year but I think it is worth it in the long run.

Also, Bigger Pockets is a great resource, and you will probably be able to find buyers on this site.

@Keith WattsWelcome to Bigger Pockets.

I am new to Bigger Pockets and wanted to introduce myself.

Give them a couple of options, they already know the unit got foreclosed, most people move to avoid the hassle. 

Agent gets paid from the net proceeds unless the seller is unwilling to pay the buyer agent fee/commission, which in this case you do not have an agent; that agent would ask (if they were representing you) for the buyer/you to pay them their commission from a buyer broker agreement (if the seller was not paying commission).So it's the same difference, the seller will pay it (2%), and the agent will not come out of pocket for it.

As long as you are getting market rent or better and have great options to terminate contracts as needed in case they fill with bad tenants, poor management of your property, etc. it seems like a viable option for passive investing.

Also, after a year, the mortgage hasn't been paid down by much, especially if it's a 30 year mortgage.The only challenge you may run into is if you purchased it using a low or no money down mortgage option like FHA or VA lending.

If you are hoping that this property will stand on its own with you living in it and not having to put your active income into it, then it might not be the best option for you right now.