I bet there were some takeaways looking back. 

It seems as though you might get some of your money back on the refinance so I would estimate how much you'll have "left in the deal" after refinance.

@John Friendas  back to Jay's comment, it shouldn't matter if you plan on purchasing another property soon after.

One said the 2nd mortgage has to be assumable and the other said it did not.VA issued Circular #26­24­17 back in August to try and clear up the issue:Assumability: If the secondary borrowing is not assumable, the holder of the VA guaranteed loan should counsel the assumer that this may restrict their ability to sell the property to another creditworthy assumer through an assumption in the future.The lender currently servicing the loan still can decide whether or not they'll allow the 2nd.You could do seller financing for the gap and then refinance just that amount with a Home Equity Loan or Line of Credit at some point down the road. 

This may sound harsh, but I would actually put this on the tenant to get his rent payment back.

They also are thinking of getting a different PM to manage it after they can gain back control but would like advice on doing so.

This is for basic informational purposes I am not an attorney and this is not legal advice.First, if you offer to purchase a property using a HELOC to fund the purchase you cannot later back out of the agreement because you couldn't find PML or investors.  

Then, each person with money in the deal would get an 8% preferred dividend until they get all of their money back.

You can also potentially bill back tenants for usage too.   

So this is a Quadplex, very cool.Ask him if he would carry back a second for part of the loan.