In the meantime while living here, we fixed a ton of issues, remodeled the bathrooms prior to listing our place last weekend.we accepted a very generous offer that we will come out ahead on.That being said, I know short term capital gains taxes are in play, and I’m wondering how I can reduce these taxes as much as possible (legitimately).

If you haven't done it already, call your creditors and tell them you have a medical issue that has caused you hardship and ask them to reduce your interest rates. 

Many times the Listing Agent isn't strong enough to resist a "commission-ectomy" and will either reduce their commission in the event of "a double dip".  

It would serve the purpose of having access to funds for an emergency, but would reduce the cash drag on the portfolio.For what it's worth, I hold another $20k or so in personal cash reserves that are separate from my real estate accounts - in case I lose my job, etc.  

Or does that mean this market has something unique that reduces expenses and makes a property profitable with 60% of the rent going to debt service?

So getting rid of one would PROBABLY reduce the value. 

If so, simply reduce the price to cover the cost of selling ( buyers agent commission ), and then draw up a listing agreement that you are to receive anything above the asking price as your fee/commission.

Work to free up cash flow – reduce cell phone plans/cable plans/car loans – etc.

HomePath will counter, and they only  reduce their asking price between 5-7%.

The house needs a major refurb and we were renting it to her at a reduced price just to keep someone in it until we can get to it.