My price range for duplexes in lubbock are no more than 200k. 20 percent down.

I 100 percent agree with @Russell Brazil.

Now "51 percent of tenants in the building must agree to purchase apartments before the conversion can be effective.

Where do you get the 10 to 20 percent down payment from?

Id probably follow the 70 or 75 percent of ARV minus repairs (minus mortgage  = MAO (Max allowable offer) formula.So 137k times .75 minus 15000 is 87750, which means the owner is basically underwater.  

If I refinance before selling and my loan to value at 70 or 80 percent will lower my gains at closing.Thanks for your input.

If we were to refinance it, our rate would go up by 1.25 percent according to some mortgage people I talked to.It has verifiable revenue as a rental from 2018 so there is no way around it. 

So, buyers who use the program will get to borrow the amount needed to actually purchase the property, plus the cash to complete renovations.Homeowners can use the program to fund remodeling projects that cost up to 75 percent of a property’s appraised value.Freddie Mac believes this approach should save consumers both time and money.

A Living Trust (sometimes called an "inter vivos" or "revocable" trust) is a legal document through which the Client's assets are placed into a trust for the Client's benefit during his/her lifetime and then transferred to designated beneficiaries at the Client's death.

In California it may happen in our lifetime that you will need this type of insurance.