However, I'm in no place to lend legal advice or tax advice but the points I put up are just some things I've been researching so that I am better prepared to make a smart decision.

Currently, when I include both refinance and sale proceeds, I get an unrealistic XIRR of 49%, while the average cash flow throughout the investment (7-year hold period) sat around 8%, and this seems incorrect to me. 

Your ear hurts and your eyes are swelling so you need to think and make a decisive decision.

I would make sure you know what that $ is at the moment and the potential DOM risk before making the decision to keep it vacant chasing a price you can't get. 

You'll need to make decisions, and do a lot of research to minimize mistakes for out of state investing.

As much of the other misinformation being disseminated, it's leading to ill-informed decisions by investors.   

To simplify the decision process, I created the following decision tree.

Considering I have had negative cash flow for years holding on to this thing looks to have been a terrible financial decision.  

This is a complex issue and I know the community would benefit from learning about our decisions.

I originally started off as an OOS investor from CA and have been pretty happy with my decision to invest here.