However, if you sell instead of rebuilding, the IRS may include part of the payout in your taxable gain unless reinvested under the §1033 involuntary conversion rules, which allow you to defer taxes by purchasing a similar property within two years.If the property was your primary residence, you may exclude up to $250K (single) or $500K (married) of gains if you lived there for at least 2 of the last 5 years, likely resulting in no taxes owed.

Or do they apply an equalization ratio.

Based in Tampa, I have a lot of knowledge in Pinellas County rules and regulations as well as best practices/highest returns. 

Purchase price: $160,000 Cash invested: $35,000 Purchased this property as a turnkey investment at the 1% rule moving equity from another deal.

Contact the tenant, remind him how rent is to be paid, and require him to follow those rules.

Some lawyers will file ejectment lawsuits and ask for service by publication, but that is not allowed under the rules.

Sharing understandings and rules on guests, cleanliness, chores, pets, drinking, drugs, boundaries, house identity, conflict resolution, communication platforms, etc.

Quote from @Jeff Roth:Monthly rents for mid-term rentals are about 20% (+/-) higher than unfurnished similar long-term rentals.I would not base the income potential for a MTR on a rule of thumb.

I would apply the cash flow to pay down the debt and hope to have significant passive income (or equity to put into something else) in 10 years.

Property taxes will likely be reassessed based on the transfer value, so confirm local rules to anticipate potential increases.If you hold the property for at least one year, you can use the equity as collateral for a construction loan, aligning with your long-term financing plans.