Does it need more substantial renovations like gutting a bathroom?

In this case, a duplex cash flowing $140/door gives me substantial room to still come out ahead, even if I over-estimate rents and my cash-flow is lower.

Maybe someone with CPA background here can chime in- I'd imagine if it's really a substantial amount of gain on that non-exempt portion of the gain (save realtor fees and closing costs) you can throw that portion alone into a 1031 account. 

A decent lawyer can easily turn that into " the landlord asked a question that pertains to a protected class.....and my client refused to answer...... its our case that landlord declined their application due to the fact that my client refused to answer the question that can't legally have an influence on the landlords decision anyway.

@Aaron Lancaster I don't know that market, but considering those rents I would offer substantially less, or maybe just pass on the deal.

Make sure to have before and after photos with dates to substantiate your charges against security deposit.

The realtors I know aren’t driving beaters around so they can stack money for their investments , that’s for sure My FIL (no REI but he invests) who is worth a substantial amount of money from a successful business and lots of good/great investments drove around in a 1998 GMC Yukon until a couple years ago.

In particular, if there is substantial negative equity most deals would not make sense if banking on appreciation.

Shrinking it down to individual bedrooms substantially increases the risk, the numbers don't line up, and it's just not appetizing.I hope my thoughts give you some insight.

The safety plan, dated during the term of the tenancy to be terminated, must be provided by a domestic violence or sexual assault program which substantially complies with the requirements set forth in G.S. 50B-9 and must recommend relocation of the protected tenant.