There are a lot of considerations for both options before you can figure out your expected profit/return.

If the companies are large enough, and can tie down enough real estate at low prices to make them work, it can be profitable. 

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?

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

Additionally, it fits into my broader vision for the area, which includes developing adjacent land into 12 patio homes and two duplexes, creating a cohesive and profitable portfolio while enhancing the local community.

How did I leave out Profit?

You'll NEVER go broke taking a profit."

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.

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

Hello Everyone, Greatly appreciate any thoughts on the matter.We have a property in Big Bear, CA and it is making a small profit this year, but it is strictly an STR.