No capital gains.

The local economies are growing much stronger there in the right places and you can get large capital gains by benefitting from the path of progress.

Trust those who are doing the SAME THING you are doing, not those who have something to gain from what you are doing.Also, you need to read a few more books.

@Rene Simon I’ll be the guinea pig.

Maye sell it after a year or two after gaining a little equity and selling closer to market rate?

Since I'm gainfully employed and have quite a bit of savings I don't qualify.

bought it below value via short sale, rehabbed and gained value via appreciation How did you find this deal and how did you negotiate it?

My thought process was not so much of gaining cash flow from my rental instead saving the interest on my primary and the only reason why the interest is 67k because I’ve been paying additional 2k a month towards principal.

The longer she is there, the more empowered she will feel and harder it will be to gain control.Please know that you're not the first person - nor will you be the last - to encounter this type of situation. 

Even if it did appreciate over the next few years, I highly doubt the gain would make up for the 24k annual loss.