I would, If in this position, take the equity in the form of a HELOC and purchase a cash flowing asset that would not only pay for itself but pay for the cost of the money while putting cash into my bank account each month. 

Right now, I do have the "REALTOR" status but wondering if it make sense to keep paying the $800/yr to keep the status?

So depending on how much you pay for it, you can assess your cashflow.

I assume the lender pays for it, correct?

., 10-day notice to pay or vacate for nonpayment of rent).

How do you think the 2 relatives will feel about having their rent raised or being required to pay rent period?

I would apply the cash flow to pay down the debt and hope to have significant passive income (or equity to put into something else) in 10 years.

Paying down the note quickly is a power move too—love that disciplined mindset!

, status of major building components (roof, HVAC, structural, electrical, plumbing), accounts receivable aging (are all tenants paying or is the $20,500 schedule rent?)

In the “old” days, people would have the seller pay the lender so as to not “alert” the lender that a property sale had taken place, so that the lender def wouldn’t trigger the so called “due on sale” that’s a part of almost every mortgage or deed of trust document.