Remodel while the property is still in your name to increase its basis, which can reduce future capital gains taxes, and take advantage of the capital gains tax exclusion if you sell within three years (up to $250K for single filers or $500K for married couples).

I considered starting out house hacking a MF, but it will only increase my monthly expenses, not lower them or provide cash flow. 

But I'd like to see Lynnette's projects to support your claim "the portfolio was a 30% increase in cost to the consumers" since in TN, NC, VA, NC PPAs are priced at avoided costs. 

If you could buy it with a 15% discount: $60,000And rent discount at $2200 mo. with a 5% increase annually would be: $132,615 for 5 yearsYou would be buying the home at a 48% discount in this example.

We have an existing mortgage (backed by these 2 lots and 2 others) and given the increase in appraised value there is no need to pay anything back to the lender when selling the lot.

Increased demand for historic district rentals and excellent rental history.

The increased cash flow would make such a substantial difference in your daily life that not paying it off would be foolish.Outside of that, I can't see many reasons I would take a 15% tax hit to save 4% on a mortgage, which is really only effectively about 3-3.5% depending on your tax bracket.

Additionally, the property includes an outdoor swimming pool.The use of the accelerated depreciation strategy helps real estate investors to reduce the tax liability immediately which therefore increases their bottom line due to the offsetting of income.

This was in a middle class neighborhood and I get why that is less risk however with apartments increasingly including laundry, I would imagine demand lessening in that location. 

To eventually also cash flowing as rents increase.