As I mentioned, La Quinta and some parts of Indio are favorable for rentals.

I'm not sure how "well off" they are, but I'm guessing they are comfortable, as they are probably just about breaking even, if not losing money on this property after taxes, insurance, etc.They aren't marketing the place and we've never heard any mention of them thinking to sell.  

For example, if you think you can make $35K post rehab if everything goes perfectly and you get the price you believe you will get, then getting $30K for a quick as-is sale (more than likely to an end user) makes more sense and takes away the risk of unexpected problems during rehab and/or the appraisal issues I mention. 

Now, the old lease is very simple and parkings are not even mentioned, it’s  from previous owner.

There are many factors at play, but it seems many eyes are turning to the Philly rental market, not to mention us local guys with the connections.

You mentioned that it is worth $429K, but you purchased it for $188K, and you put $110K into it. 

If the latter, as others have mentioned, best to get that paid down/off first before looking to invest.And totally on board with the Dave Ramsey plan mentioned by @Steve Vaughan.

@Greg Scott, I should have mentioned that window units are really common in my city. 

@Hadar Orkibi as I mention in my post I currently have a mortgage on my personal home.

The mentioned potential fines and told us even if we did demo/replace ourselves then we'd still need a lead test at the end of the reno to get a lead cert and if we missed even one spot they'd need to abate and clean the whole house, leading us back to square one.