All that's due is the security deposit, for you to return as long as no damages to the property. 

Two - In my due diligence, it looks like the only real option to make this unit legal is a special permit and variance, therefore, causing me to update the whole building with sprinklers, fire alarm, and meeting stretch code (certainly not enough meat on the bone for this route).  

Show that you’re knowledgeable and consistently securing great deals where the numbers work.Unlike other types of leads, nurturing a cash buyer’s trust doesn’t take much time.

What is the fair market value of the property that secures this note?

However, the Most alarming thing is they have allowed the water bill (they pay for all utilities, but the city bills the water to me) to mount over $2k over the last several months.

Landlord can require tenants to be responsible for separately metered utilities, so can avoid waste.Landlord can get annual small increases in rent.NegativesMost of us don’t treat something we get for free the same way we treat something we’ve worked hard to obtain.S8 applicants claim “broke” and don’t like to pay application feesSame goes for security depositsS8 tenants, in our experience, tend to cause more property damage than non-S8 tenants. - Make sure you get a security deposit and perhaps do a surprise inspection of their current home.S8 requires an inspection (mostly health & safety) before approving a lease and then annually thereafter. - Not something most landlords taking care of their properties have to worry about.There are limits to clauses they allow in your lease.

I’m looking for some guidance on my next steps toward achieving financial freedom through real estate.My long-term goal is to acquire enough rental properties to secure my financial future.

@Joe S. over 2.5M of my funds are sitting in another lenders bank who shouldn’t have it and I have no security interest in the property that was paid off.

I still plan on personally guaranteeing the loan to secure it. 

The property is yours to secure and use if necessary.