As Don explained what the wrap does is give the buyer who is the payor of the wrap the right to step in and payoff the first and in the AITDS we used he would wipe out the warp owners equity. 

Have a baby, and gallop into the sunset (while still making calls to PM's)INTEREST:I first got interested in Real Estate Investing because of the potential financial freedom it can provide to me and my family.

Search youtube, "Multifamily owner and baby boomer sells 18 units and uses a deferred sales trust instead of 1031" to here more details.

Baby bonds. 

Through your local bank that you are using, are you reapplying for each new home for a seperate construction loan or are you setup as a credit line with them and just submit a new budget for each new home I do want to also add that my banker who is the VP of lending and branch manager has been banking me for 30 years..WE have been through all he ups and downs including the GFC were I got almost totally wiped out financially..

I think there’s some sort of option of to do a little refi on both house 1 and 2 and get the money needed to wipe out the line of credit(allowing for bigger flip opportunities, especially if I partner up with someone) and also renovating that garage space with the private investor as long as it is under 1000/month.

If someone was willing to rent to you with 5 dogs and the stray and her babies are short term, they may not have a problem. 

Or like some of the crowdfunders money flooded in and they made some pretty seriously poor lending choices and they themselves and their investors got wiped out.

@Damon AlbersSounds like these properties are in a class c area and your manager is not doing a good job vetting themBut this is not out of ordinary for c class rentals which is why people look at cash flow and be like wow but one $5000 bill can wipe out 4-6 months of rental income and properties never make money and rarely appreciateThis is why we do not do lower class rentals as stated cash flow vs reality are typically not close

The plumber said usually tenants clog the drain with baby wipes and gets this issue all the time.