I truly appreciate it as I am stressing now how to solve it.do you happen to know what should I do In order to take care of this matter while trying to minimize damages?

Talk to your Attorney and have him deal with the town, in the mean time take care of the property and do as the town says needs to be done.

You can buy a property with only 3.5% down so taking care of the home base shouldn't empty out your war chest either. 

I’m 26 years old and single and I help take care of my disabled mother, much of my money I got from a relative dying and I want to make them proud and grow it and be able to support myself and my family well.I am not looking to own 100 rentals, just make a few more smart moves.

For reference, here is the Fannie Mae cash-out refi page I️ pulled the info from:https://www.fanniemae.com/content/guide/selling/b2/1.2/03.htmlTake care,Tony

Doing it because you care about them and want to help is great, but if you can't afford both mortgages at the same time it could be a problem financially and personally. 

You caught my attention when you said "You have negative cash flow (which is normal while House Hacking)"?

There are some rough parts of town near decent areas and if you are not careful, you could get burned.

The contractor might not care so much whether you are happy with him, but he will care whether the big box store that gave him your job is happy with him. 

Be very careful to understand the priority of liens in this sale... and whether you are buying subject to an existing first mortgage, etc.