I think to accomplish my goals on this one I am going to have to 1)keep trucking along slowly now that I'm back at full health 2)find someone to "buy-in" with equity on this property as a return or 3)sell it 

Shared well, separate 3br septics that have been inspected and are good (Have to add a holding tank per Health Dept. as new regs require 500 gal holding per bedroom and both are 1000gal tanks).This is a country setting on outskirts of town (7min drive) and 1/2hr to 45min to 4 major cities where most employment is. 

You may also get your local county health department to assist with your case - inspection, verification type support.

I only needed the 203K monies to cover required "health & safety" issues.

What about charges that don't generate the same type/amount of tax deduction -- I pay my health insurance with a credit card, but I can't just take a Schedule A deduction of my insurance premiums. 

Anyways, our contractor was first going to tackle the water issues and then knock out every wall (which I would have requested anyways lol) as nearly every wall visibly had mold and I am highly allergic to mold.In fact, even though I suited up I'm now having to go see my eye and health doctors as my eyes weren't 100% corrected and now I'm having allergy issues due to doing just a quick walk-through.So while you may think it is a scam, people like me literally need to have the job done fully and at highest quality.

The landlord came to me to see if I wanted to purchase the property because he has some health issues and wants to sell off.

The other thing is our health gets worse as we age, people get sick.

The property assessment in 2015 was around $89k, but the property needs some cleanup done, if I had stayed in Alaska longer I would have done this cleanup myself, and went for about $70k for a quick sale, but we moved due to my parents health concerns before I could do that.

A Protected Tenant is a tenant who has continuously resided in a rental unit for at least ten years, and is either: (i) 62 years of age or older OR (ii) disabled as defined in Title 42 United States Code Section 423 or handicapped as defined in Section 50072 of the California Health and Safety Code.