We agreed on a price and I will pay her the capital difference between the sell price and the remaining balance.

It basically means that you are grandfathered in and the structure can remain a duplex as long as it is treated as a duplex. 

This way, you'll have some cash remaining, but you will also be in the process of paying down your credit cards.If you need to buy a property using traditional financing, it will be easier with good credit.

You should expect that the tenants will remain in place for several months beyond your notice date and Sec 8 will continue to pay. 

Could you refi your remaining balance and lower your payment to get better cashflow?  

But the 2% that remain will have an impact on EVERYTHING we do.

I left after lunch on the 3rd day as I knew the remaining few hours will be all spent on enticing people to join the elite training which I had planned not to buy into even before entring the room as I didn’t want to confront them on some legitimate concerns I had.

If I build and sell a condo on the other side of the lot, I would assume that the taxed value would remain the same (aside from the regular annual increases) for the original home and that the new owner would pay taxes only on the value of the second home ($300k) and no property taxes. 

Your tenant is cancelling his contract early, and depending on your lease wording, is on the hook for paying the remaining 5 months.

I’ve been focused on saving and remaining as debt free as possible so that I can invest in my first rental property this year!