After running the numbers with all of the expenses and assuming I can charge more in rent on the renovated side, I have determined that it is a good deal and could even have positive cash flow after some more renovations are made to the other side after the tenants move out. 

Yes, assuming it was actually available and in rentable condition.3.

Assuming you are not licensed and did not need to issue disclosure?...

You will get your earnest money back assuming it was handled correctly and put into an escrow account.Sorry to hear about the troubles but I hope you are able to close on your new home soon.

I was talking with my commercial lender today about a cash out refi for a duplex and he’d do it in 90 days, assuming rehab compete and building tenanted.

I assume I should still be notifying him when I have somebody working on the property or when I need legal access?

Not sure how you feel about that.I am assuming your $125K cash offer doesn't have the same 7% costs of sale, but is it worth the extra work and risk to earn $61K then $20K from the cash sale?

In your case it appears that cost is lesser which means you'll be paying capital gains on at least $400k +/- in the future assuming values hold.

She looks at things from an investor's perspective, and helped me purchase the duplex that I live in. https://www.realtyaustin.com/agents/Jen-Berbas.phpSince purchase prices and property taxes are pretty high, SFRs in Austin are definitely an appreciation game, not cash flow (assuming the standard 25% down). 

I assumed all buildings in MA were smoke free.I called the prior management/HOA and they essentially told me I have no recourse even though it lead to my tenants leaving my rental.Any advice on action I can move forward with would be appreciated.