Before sourcing the loan I would  speak with a contractor on getting a complete scope of work done and pricing.

Speaking of DSCR in particular, 80% will likely be your best bet versus 85%.

Now I need to find a real estate agent(I am "interviewing" a couple now), an accountant to speak to and of Course a lender.

When we were on a call with Lendbase and the lender, the lender was telling us we needed $2.5 million in liquidity post-closing but after speaking with other brokers we found out we only needed $300k.

If you own several apartment buildings your best interest might be to speak with a asset protection attorney versus asking questions online of just anyone who might respond.Good Luck!

Let the tenant know this in writing and if you need to, also speak with them, but always in writing first in these situations. 

It doesn't make sense as a first investment, especially when your main reason is because you "enjoy speaking Spanish and salsa dancing".

As this is a little tricky, I would recommend speaking with a 1031 QI first.

--------------------Again, I appreciate the opportunity to speak. 

I realize it's just an example and my comment is a generalization but just something to be aware of.With regards to the original question, I think it comes down more to what you want to do and what the offer is for walking away vs. rebuilding.That is the exact example a public insurance adjuster used when speaking to a local investor group a few years ago.