The only “good news” is you’re paying for last year’s shortage and thsi year’s taxes, or this year’s shortage and next year’s escrow account. 

I ran some of your numbers, assumed rent of $1,290/unit and that you pay cash for the rehab costs.

This is a the perfect vehicle to use for short term like buying a  property with cash, then refinancing the property to pay the line of credit back in full, and use it again.   

If you have the stomach for it and understand the big picture it pays off. 

I'd also never pay $700 for an LLC.

To confirm, did they pay timely and what kind of condition the property was left in. 

The most important rule is to have the cash flow of the new property be able to pay all its expenses, mortgage, AND the line of credit back.

To pay for this, I used a heloc on my current home.

We do a small fruit basket and 2 bottles of wine (1st one complimentary, 2nd one, there's a "pay envelope" $10).BUT nothing says welcome to Eugene, Oregon like a couple of joints... :-)(just kidding, but depending on the Guests demographics, we can direct them to the best dispensaries...)

If you have cash, you could pay off the underlying loan2.