In addition, short sales are "as is" so an inspection is for my purpose and my lendor only.

I've bought, sold, and hold multiple SFR in addition to these commercial units.

I will be building out my back of house and adding a laundry room addition on the back of the house. 

Just because you kick these people out and raise the rent doesn't mean the next tenant will be grumpy and complaining to all the neighbors about how high the rent is.If your current tenants were truly grateful, they would have recognized that even an increase to $1,050 was a generous offer.

You would still get to deduct the interest related to 450 k loan against your rental income. 2) The additional loan that you will take when you take out 750k in equity is what you will have to decide.

By planting these fixed seeds that are and continue to pay dividend, it stabilized my income flows and concurrently allowed me to build up reserves for additional purchases. 

Additionally, baked in the numbers you mentioned like price-to-rent is an assumption about cash flow, but how would you go about analyzing an entire market for cash flow?

I have been trying to market this property on and of for the last 6 months, but now its starting to become a burden as I have to pay on a delinquent water bill that was the result of a busted pipe leak in the basement right before we closed on it, and additionally I have to pay the remainder of the taxes.

In addition, I feel like if I have to pay PMI, I am not ready to purchase another property.

The best thing to do is to speak with a lawyer that specializes in landlord/tenant relations and see if they have any additional suggestions