That's 85% of the reduced list price!

Yes, they are more difficult to sell (the average homeowner won't be able to buy them, but other investors ARE constantly looking for apartment building offerings- especially the smaller, easier to manage ones, perhaps you reduce the rent for a handy tenant to be the 'maintenance guy', and a smaller complex he can handle in addition to his 'day job'... with multiple units, you get more rent money 'per door'- and if one or two is in transition (not rented), you have the others to make up the shortfall. 

Reduce inspection period.

We've since reduced the price to $995, but there haven't been any showings.

Discuss with your attorney whether it is in your best interest to reaffirm the debt.With a chapt 7 you have reduced your debt load and lenders know you can't file again for 7 years.

Marie there is not a permitting rule regarding the 7 day stay. we plan to reduce that down at the end of the season.

However, shortly after securing the property under contract, the lender notified me of an error on their end, stating that the property's is rural for them and hence mandates a reduced 70% LTV.

I'd start by talking to your neighbour and asking them to split the cost 50:50 saying that the longevity is reduced because their dog keeps jumping up on it. 

There are some that manage to find the money and the deals quickly when the market is just right (and they have plenty of cash), but most success is built slowly, over time.Increase earnings, reduce expenses, save up, invest.

I have taken steps to reduce the mortgage payment that may take time to go into effect: filed homestead, I plan to reappraise the property after renovations are complete to eliminate my monthly $66 paid towards PMI, and I am currently negotiating different insurance policies.