I have no insight into the Maryland market but you're doing the right thing by consulting with experts on here.

What does your tax advisor say? 

If that is the case I will be missing out on significant tax savings.

I could sell the property on the market but I think after fees and taxes, I would be at a loss.

Hire a consultant who has the CRE or CCIM designation 

One thing they won’t say - but you can research- are the closing costs and capital gains tax .  

Turns out, as we all expected, the law wasn't followed at all regarding the gouging tax increases last year.

Hi Jagger-Great question.I am a fellow Michigander from Ann Arbor.Nothing against Maine but the Midwest has seen some of the strongest rent growth in the country.When I consult with my clients, if they don't have the budget for a market like Ann Arbor, I direct them to Lansing, MI.The cashflow is strong, the economy is stable, it is the State capital so there is always economic development creating new jobs, the price point is relatively affordable because the cost of living is lower there, and appreciation is predictably linear.I also advise investors to buy duplexes and up so you always have a rent check coming in most of the time if you have a vacancy.

When the value goes up, the tax appraisals go up. 

When you start your real estate investment career, don't forget to do extensive study, consult with knowledgeable investors, and move cautiously.