Congrats on this investment @Kai'ler Sato ! 

Purchase price: $240,000 Cash invested: $60,000 purchased this distressed duplex using owner financing for $240K and a $60K hard money loan for renovations.

You may be safe to get non-commercial F/F adding up to 2 ADUs to a duplex even though by rule this does not qualify (in my area I have never heard of this being an issue). 

Consider this scenario:- A tenant calls at midnight because the heater stopped working.- You need to find a new tenant when someone unexpectedly moves out.- The bathroom sink is leaking—do you pay a plumber or fix it yourself?

Do you think this would be feasible in Phoenix and if so, which areas?

You are definitely going to want to get a lawyer and as soon as possible.This will sound harsh.In your story, you have made a number of very poor decisions about how you purchased and managed this property. 

I'm just new to this world and wonder what someone with some experience would do.

Has anyone else had this same issue?

I was thinking of hiring this summer.

I'm interested in following this project when/if you kick it off. we have this in columbus. 58 rooms on .1 acres. 28000 sq ft. but this site the land is 50k it's set same as columbus but in miami dade county but sounds good. are you more interested in the miami one or the columbus one?