Sorry for taking so much time to lay out the scenario.  

Layout is nice and spacious.1st unit is a 3 bedroom, 2nd unit is a 2 bedroom ( rent estimate by an experienced and investor oriented Real Estate agent is 1100 and 900 correspondingly) Does not need any major repairs besides new furnace ( and oil to gas conversion) , just some updates, conservative estimate of rehab is 18k for both units ( including 4k for re-winterization)It is a REO and cash offers only. 30 DOM.

Lay out what you are doing, if it appraises out, you're set.

It was converted to an open concept layout with a huge master suite and 4 bedrooms with 2.5 baths.I didn't have many contacts and had people trying take advantage of me so I went through two electricians, plumbers, and carpenters.

Bad layout that couldn't be easily fixed.

Your sentiment was  intuitive to me, but it never hurts to hear it stated.  

If you do a basic buy and hold or flip, it is pretty intuitive.

Ignore is asking price and layout your cash flow worksheet of the value that you have determined. 

I took that option as they said it's easier to get the money back from them than from the state.I called the number on the form and spoke to a nice guy at the revenue department who told me to just file the CRT-101 form (I think he told me that), and they'd issue a new clean tax cert so that the title company could release my money.Well I just went to download the form and they're very complex and non-intuitive.

If your duplex is marketable to another investor that can create a way to make it cash flow, you have to ask yourself what is they can do that you have not.If it were my property, I would lay out my income statement and challenge every line item.