this sounds like a wood frame Bungalow house built between the 1910's and 1950's, or wood floor framed block home built in the late 1940's or 1950's, here in Clearwater. 

It looks like the schools aren't very good, but it is very close to a lot of things (some new construction nearby, not many rentals in the area except to the West about 20 blocks. 

They responded with a letter.

If you have concerns, I usually request a "City-Will-Serve" letter from the City in which they provide a formal letter stating that the City service has capacity to accept your added flows.

Which I feel will block my money into it now which restricts ability to buy anything else. what you all suggest?

Today she parked back there again and I blocked the driveway out. 

Now 20+ years later, dad is dead and my brother needed to use that driveway and the gentleman went out, tried stopping him and then blocked entrance onto my moms property from her own driveway claiming he owned it.

Either way, the numbers are a lot better than what this offer letter is offering.

You can increase your chance of getting an offer accepted with FHA 203k if you show the seller that you are paying more than other buyers, have your 203k Team in place (203k experienced Lender and Certified 203k Contractor), and write a cover letter explaining your reno goals for the property and list your 203k Team members for reference.

They have every ability to block the lot split and the sales, since your land is pledged as collateral to their loan.I am not a 1031 expert, but I believe the sales would not be eligible for 1031, since the entire intent of the deal is to flip at least part of the property.