Selling and buying something else you want keep and doing a cost seg in would help with the tax burden probably better in this situation.

I am after cash flow mainly.

No lender will lend on a deal that doesn’t make sense.4) After the appraisal comes back you will get a document that outlines the amount to be borrowed and all fees that will be relating to the loan (I would suggest to ask for an example of this document when you are searching for an HML so you will know what fees are going to show up).5) Close the loan at a title company of your choice.6) Begin work and make draws on any repair balance.

If they won't pay, end their lease and deduct the cost from their deposit after they vacate.P.S.

Use umbrella insurance as an additional safeguard, especially if you opt not to form an LLC.Avoid S-Corp taxation for rentals, as rental income is passive and not subject to self-employment tax. S

However, after their "exhaustive" search of thousands of lenders they partner with, they were only able to offer me one loan. 

What are the tax ramifications of a sale, if any?

@Pratik as @Neil Narayan mentioned, cash flow is very challenging due to the property values, property taxes, and soft rental market.

What is your plan after rehab.

Posted this on the Multifamily section, but realized after I should post it here.I am a current Senior at the  Catholic University of America playing Baseball and finishing up my accounting degree.