It went from 85% purchase price covered to 65% even after the deal had been analyzed by them extensively prior.

Was the property in service in the prior year? 

There's nothing preventing you from looking at replacements properties prior to closing on the property you're selling, You can even be under contract before you even close on your relinquished property.

Louisville MSD just increased rates 7% again and this year we are averaging $700/month between water+sewer bill which has basically bankrupt the association as all prior years were budgeted for half of this.

yep get them to sign off on any and all prior claims as of X date - give them the money and then do not renew. 

Paying off some of the mortgage with prior savings.Your third point gets closer to the crux of the matter!

Btw, prior, the city and state would NOT foreclose for property tax nor accept the building as a gift; the government just determined that these property owners must become economic “slaves” to the government.  

Unused contingency funds, unless they were received directly from the borrower, must be used to reduce the outstanding balance of the renovation mortgage after all of the renovation work has been completed and the certification of completion has been obtained.The loan is not re-amortized.Draw Schedule:The HomeStyle program has a maximum 4 draw process.The initial draw can be up to 50% of the total project and can be for materials for the project.The final draw will be at least 10% of the total project as retainage and funds will be released upon receipt and approval of final inspection, Certificate of Completion from Appraiser, signed All Bills Paid Affidavits and Lien Waivers.Additional Draw Information:Ø Signed Draw Request by borrower and contractorØ Signed All Bills Paid AffidavitØ GMG review and approve the draw request and will release funds for disbursementØ A check will be issued in the name of the borrower and contractor and delivered to borrower via USPSØ An inspection of work to date will be performed at 50% completeFinal Draw Information:Ø Signed Draw RequestØ Final inspection/Completion Certificate will be required for release of final fundsØ A Title Update showing property free from lien or encumbranceØ General Contractor’s Lien Waiver AffidavitØ Affidavit of Completion GR will review and approve the draw request and will release a check in the name of the borrower and contractor.Change Orders and Cost Overruns:Changes to the initial plan are not permitted unless prior approval by Guaranteed Rate.

Prior to anyone submitting an application ensure you share your rental criteria clearly ( i.e. credit score, your preference on acceptance of rental collections, evictions, felonies, misdemeanors, pets etc. ) as well as sharing any additional charges ( i.e. monthly pet rent, pet deposit(s), security deposits, admin fees etc. ) people unqualified will usually "walk" as this stage and that is where you will save time. 3.

Typically, with apartment buildings, you'd need to go the syndication route and raise capital, which can be challenging without prior experience.