For example, we have considered approaching it from a investment consultant angle where we provide a tailored service for a small number of clients that can handle volume, which we would work with exclusively and who provide an elite product, rather than an extensive buyer list filled with investors who are less serious.

It sounds like you are not comfortable with the future appreciation; so, makes the decision easy to sell...best to invest in what you know.I would also recommended checking into the capital gains exclusion and the rules around partial exclusions.

But bidders who either hadn't seen the property in the last 48 hours, didn't read the newspaper or watch TV, were feverishly bidding on a house totally rendered into a pile of ashes.As I always say buying property/liens at tax sale is the most dangerous way of buying real estate, no home inspections, usually can't see the inside, no home warranty and no do-over. 

Were you your VA's exclusive client, or did they work for multiple clients?  

If tenant negligence caused the infestation, then I would bill the tenant for some of the costs.Do your best to make sure exclusion of rodents is done properly and thoroughly.

@Alyxandria Singleton...in Las Vegas you can look for probate leads in the Nevada Legal News newspaper. 

But, the residential construction domain is ripe for new methodology offers, just hasn't happend yet.If they could resolve the costs issue, I would use this methodology almost exclusively for all the advantages above. 

If that's what you did in reality two years ago then you could take a prorated amount of that gain from the former investment side tax free as well as all the gain from the truly residential portion.Either way, you'll still have to recapture all depreciation which is going to include not just the depreciation you actually took but any depreciation you could have taken (yes, the rule stinks but that's what it is).Of course you can always 1031 the one half and take the primary residence exclusion for the residential half and not pay any tax that way.Your accountant is going to have to tell you how they've handled it.

Considering that the condo has appreciated significantly since purchase, my understanding is I am eligible for capital gains exclusion under section 121 if I sell before August of 2018, having lived there for 2 of the past 5 years.  

My Managing Director was one of three brokers who worked exclusively with all the special servicers and he made a good amount of money selling apartments during the recession.