They may sell in a few years when interest rates drop or keep it longer term as cash flow on the property improves!

. -- Thus, you can expect to get Class C or D tenants, which have a 15-25% probability of defaulting on their lease payments.2) If your PMC is lowering FICO to 550, what are they doing to improve their screening in other areas?

Diversifying your portfolio could reduce risk and improve overall returns.Higher Cash Flow Potential: If you redeploy the equity into markets with higher cash-on-cash returns, you could significantly increase your monthly cash flow.

What's his home improvement contractors license?

You just have to be careful because some sales agents will just advise you to over improve the property because it makes their job easier.

And I would like to stretch it out longer to improve cash flow.

This ensures you lock in better terms based on the improved cash flow.

That loan will cost you around $800/month for 30 years.I think this improves things, and your only loss would be the cost of the equity loan and the payments you've made so far on your IRA and credit cards. 

I also wonder how this is going to work.. you cant tax a parcel that has lost a 5 mil dollar improvement ??? 

Better education and training might be one way to improve the situation  Damn, sorry to hear that.