It's usually good practice to be overly conservative and to retain excess capital for repairs etc, so I wouldn't go out and spend all of your cash at once.

Account Closed - it seems that you have an excessive amount of moisture in the basement... both the buckling wood floor (I assume wood flooring installed over a sleeper system) and the epoxy floor bubbling are indicative of high moisture.  

After you do get it to the foreclosure sale, you're only entitled to what you're owed, not any excess.  

If it needs 2 coats, that's excessive and you can charge.

I prefer 30 year notes, allow cash to build up and pay down with excess cash.

And specifically short on the excessive $21000 EMD due tomorrow.

Which is more likely to occur.  1)  The bank calling a loan due on sale for transferring to an LLC, or 2) A landlord being sued and judgment entered in excess of my liability limits (500,000 per property, 1 million umbrella)?

As an installment sale, they will establish an equitable interest in the property, your idea of simply evict and repeat is old school now, it requires a foreclosure and you may have to sell and allow them to redeem excess amounts from the sale, see your attorney. 9.  

Remember, most other countries don't have real estate markets fuelled by low interest rates and excessive debt.  

In other words, Grandpa purposely didn't deal with the mortgage lien on the property as grandpa was in fact the mortgagee which by causing a default benefits his personal interest as the mortgagee by creating a barrier to reinstatement for lack of debt service and the excessive accrued interest.