This probably seems attractive but at the same time if it stays unpermitted it can be head aches along the way and if i were to ever sell in future run into the same sort of problems. 

Also we “Pruned” our assets and moved up in quality and future embedded development profit.  

So other investors in the project want to sell as cash flow is not good and take a loss but I want to look at alternatives where we could get better cash flow for the future and it seems like section 8 pays more than market rate in the zip code.

Real estate investmentIf you're serious about building wealth and securing your financial future through real estate investing, you know that financing can often be one of the biggest hurdles.

I am currently a 19 year old looking to simply gain as much financial education, simultaneously saving money for future investments. 

But on the question of refinancing, well no one can predict the future.

The future owner would like to do the work themselves or with an unlicensed (and very affordable) contractor, but to get a permit they need a licensed contractor.  

They are bad policy, unfair in the long-run to the the future renters of a given jurisdiction, and will hurt cities. 

Where you add the 50k deprecation amount to any future depreciation.

@Abraham BerkowitzI suggest you focus on making money on this deal and not on reducing future hypothetical taxes. 95% of first-time flippers lose money on their first deal once everything is accounted for.