Tenants remain in place & have been great.

The Tenant signed the lease, the unities were to remain in my name only utilities that is not covered in the maintenance fee is electricity and cable/phone/internet 3.

Give her a certain amount to help her make her move but have her carry the rest while you rehab the property.Once you rehab the property, she can get her remaining balance at closing after you fix & flip the property.  

I have been using Bigger Pockets to continue to educate myself on the various landlord pitfalls and tips to help me remain successful.

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.