There is a secondary market for performing HML and private notes; they generally pay less than the outstanding principal balance.

It is the greater of either 1% of the outstanding balance or the reported monthly payment on the borrower's credit report.So, deferring student loans to be able to get an FHA loan will no longer happen.What you can do is go in with a co-borrower/partner/parent that will increase your borrowing power.

Sounds like you have purchased your units without any initial investment which is outstanding but virtually impossible in So Cal. 

your ability to pull cash and pay down the HELOC will depend on your value of your "investment property," that you're currently buying after you fix it up.If the value is high enough you'll be about to get out a new cash out loan that is high enough to refinance your current outstanding debt plus provide sufficient proceeds to pay down or off the HELOC so that way you can rinse and reuse it again on a new property.As long as you gauged value correctly on the buy side of the investment property you should be fine.As for how DTI is calculated on the HELOC, it depends on who you go to for a loan but typically we'd take the current min monthly interest payment on your current monthly obligation.Some banks had higher hypothetical payment models (assume 1% min monthly payment on the limit of your HELOC) which threw your DTI off, just try to avoid banks like this...

Property 5 The initial term of this Straight Note Agreement shall be for the term of Six Months (6) (the “Initial Term”) commencing on the date this Promissory Note Agreement is executed by authorized officers of XXX, LLC and Lender (individual name)Borrower shall have the right to prepay all (but not a portion) of the indebtedness evidenced by this Note at any time, by paying the Lender an amount equal to the sum of (I) the principal balance then outstanding and (ii) all interest accrued to the date of such prepayment.Lender and Borrower intend that the relationship created and evidenced by this Note and the Loan Documents shall be solely that of debtor and creditor.

Work was completed but never paid for so the lien is now outstanding.  

You have to realize you are paying 4% interest PER YEAR on your outstanding balance.  

The other tenant is outstanding, he wants to stay, the place is clean, in good condition and we are told he always pays on time.The property will cash flow at current rents, but the plan is to rehab the first unit to get it to market rate and raise the rent on the other unit.

Most country will cut you some slack if you are actively paying down the outstanding balance.  

In the Lease Agreement I have it stated that any  money received in my office would be applied first to any outstanding bills they owed to me.