Right now, you have a property with a great equity position, solid cash flow, and cheap debt (interest rate is low). 

Scammers do exist, and it’s smart to verify a lender’s legitimacy before moving forward.Check Reviews and References: Look for reviews on trusted platforms like BiggerPockets or Google.

For the most part, due to interest rates, breaking the 1% cap rate still won't provide positive return after expenses.

i fyour getting paid off when the vertical loan goes on.. then your in first position . so not sure what the issue is? 

You might want to review Airbnb listings that do just this and see how they do it.Mindy

Find out who has good Google Reviews (and responds to them), find out who answers their phone, find out who has a polished and professional website, etc. 

The 1 mile income radius could be misleading in either way to the positive or negative if the property is on the right or wrong "side of the tracks" so to speak.The 80% occupancy, if it's solely due to the mismanagement of the current owner could be an opportunity. 

With an 8% ROI and an RTP of 12.38, this market is well-positioned for rental income generation.

Do they have any reviews?

You can review your HOA's governing documents, also known as the CC&Rs, to understand the proper procedures.