When we bought it, it was a wreck, but we very carefully restored it without upsetting the originality. 

2.3 for a 15 yr taking out 90k so I'm not too upset.

Most people get upset with #7 even when everything else is going ok from a KPI standpoint.

Not sure why everyone is all upset.   

Everyone was upset that a $125K condo sold at $3K and the HOA had a rule passed where they can match such bids in the future.

If someone is so upset about a place they rent that they are getting an attorney involved in this (I'm assuming it's the tenants going the attorney route) heaven help the new owner dealing with this...especially someone just coming into the landlord business.There are several rentals in my area currently up for sale by the same owner. 

The Heloc can then be used as your emergency fund until you build up set aside  funds from rental income.  

The realtor was upset and did not want to make the offer.

This may upset your other residents if she is friendly with them, so this course of action is best used with a vagrant or major troublemaker.

I'd be upset negotiating half the cost then finding out I need a new one before closing, anyway.