@Tevin Russell I'm in Canada so the DNC legislation is probably worded differently for you, although from everything I've heard they seem to be pretty much identical as far as intent.

You need to know how much the house hack cash flows (if anything) before you can make a general statement like that.Here is an interesting podcast, from someone in just about your identical situation. 

Also planning to start systematically checking out auctions in other counties casting a wider and wider net as I can.I have found at least 4-5 counties which use language similar (or identical as that looks to be pulled straight from the state statutes) to that but then say explicitly that they will be issuing a quitclaim deed to the auction winner upon receipt of payment. 

The long term strategy (5-10 years) will be to tear down this home and build an identical structure to our existing 8-plex, making a 16 unit complex.

At this point I feel as if there has been identity theft, and clearly several other issues.I made a lot of mistakes throughout this experience and I am aware.

Who wants to pay top dollar for a culinary grade electric stove when gas is available? 

But the comps he gave me have a very large range (about 40k) for basically identical properties.

Those needs might of been proximity to work, price, nightlife/community identity, schools, or combo of them....Then you probably picked a property that best fit those needs, right?

Also depreciate half of the building if your units are identical. 

Still in the contingency phase, and I found a better deal in the same area for a building that’s nearly identical to the one I’m in escrow for.