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?

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

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

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

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?

Of course, you could also gamble that the tenant won't show up in court and you get a default judgment.

You'll NEVER go broke taking a profit."

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