Spend some time obsessing and you can pretty quickly estimate how much money you can make if you manage the property properly. 

Especially in the days of buying foreclosures, cash deals was a key to winning contracts.Paying cash also has flexibility for value add deals, where after you reposition and retenant the property, you will seek a mortgage. 

My plan is to refinance the land with hard money, pay off my debt (40k) with the cash and then take over my rental property.

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It is foolish to continue adding late fees thinking you will make more money.

You don't have a full 12 months to fund the escrow account through your payments so the money is there to pay the bill when its due. 3.

I also don't believe that an asset should be costing you money every month. 

Losing that much money really sucks;2.

So if you think the space is the best space available that fits your needs, in the grand scheme of business, you are not talking about a lot of money, so would sign the deal.  

If I end up jumping in I hope I can replicate your wins!