So if you plan to remain there in real estate investing arena, I’d recommend renting your current space out, probably with a property management company to start with.

She has slowly gifted us the remaining value to avoid gift tax in case any alarms were going off for anyone! 

So even if I lose the ability to generate income from the cash value that is securing the loans to pay the taxes, the remaining cash value will still generate more retirement income.

I ended up investing out of state but remained here.

Would you advise me spending the remaining $2,500 on better letters/list or on SEO/SEM?

The existing/recorded title deed will remain unchanged.

Divide the remaining money over your equity and your left with a cap/% return that will allow you to see if you are making a good enough return on ur money and also compare another property/investment.  

*Lessons Learned:-Have more control of the sale-Verify your cash buyers-Be firm on closing dates-Several other lessons-Remain positive!

You take them up on this and supply the remaining $20,000 to get the property rehabbed completely and then rented.

The bank takes the property.And then, if there's any additional amount still owed, they come after the remaining properties for the balance.