Should we look for a property manager, but then again that would be costly.  

List price, what you have into it, appraised value, potential rent?

This required previous rental property ownership history and a personal balance sheet the bank used to underwrite their risk.Due to these barriers to entry, I have been exploring a zoning change from B1-1 to RM 4.5 thinking the change will open up the pool of potential buyers with the ease of residential financing.

A lot of investors (especially OOS) have very little idea what is really going on with their property - or specifically in some cases, how bad it is and what the PM has to deal with.The second issue is that a lot of new investors have unrealistic expectations of what a PM can do and what the cost of these things is.

Due to insurance costs and high property taxes, we were unsuccessful in finding something that cash flows.

Just make sure you keep enough cash reserves on hand to cover unexpected costs or market downturns.Given the complexity of your plan, especially with the involvement of an LLC and potential rental income, it might be wise to consult with a tax professional.

The office sector has the trifecta...high cost of capital, high expenses, and high vacancy.

EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

Make a list of potential problems, see what your lease says about them, and figure out how to handle them before they occur.

Without an exact numbers breakdown of each option (which should obviously be my next step), I think my ideal situation would be to sell the SF and roll the equity into this, leaving me with a modest holding cost that I can absorb with my stable W2, and keeping the HELOC for any larger ticket items I need during rehab.