I've gathered that just from talking to a couple of tenants in the area..In the beginning I had a title check done and a city tax lien showed up from 2012 in the amount of $4,100 with interest accruing .27 cents a day so I thought the lien was $5,926.35.

If you have an understanding of real estate and think you can get better results growing your retirement savings in that asset class, then a self-directed IRA or Solo 401(k) is a means to do that.All investments are made in the name of the plan, all expenses come from the plan, and all return accrues to the plan.There are several different plan types and service models available.  

We don't have any debt except that we're paying a car loan that it's not accruing any interests.

One had financing issues but had enough equity cushion to pay back the loan and accrued interest, one (equity) had the exit extended and preferred return reduced, and another is unable to make some payments due to a fire (they have insurance, of course, which will reimburse them).

I assume the bank needs to pay the amount accrued up until the trustee deed being filed. 

So, I'm curious to other's opinions as if I should sell, take the around $55k loss of the purchase price and then take that $40k that I could walk away with roughly (owe $140k, it's worth $188) along with my tax deductions accruing over the years and try buy something else that will cash flow better.

One option you have is to refinance that property to pull out some of your accrued equity and reinvest it.

The note was set up so that I have the option to refi and pay back the loan prior to the 2 year balloon, however the lender must receive at least 1 years worth of accrued interest.

How often does the HELOC accrue interest?

Scott shall not be considered active under the following circumstances: unemployed while seeking gainful employment, on disability from full time employment, retired from government employment, or other circumstances out of control and atypical to choosing to pursue his housing business endeavors as his sole source of primary income. 1.Should Scott choose to “actively” engage in housing as his source of employment as defined above, Scott agrees to give 25% (twenty five percent) of his net profits accrued from his active efforts during the period of marriage to wife in the case of a divorce.2.Payment of such percentage of funds shall be payable over 120 equal monthly payments, or equivalent to no greater than 10% of Scott’s New York State Adjusted Gross Income, verified annually with payments adjusted the 1st of November each year, whichever is less, to ensure no undue hardship to Scott or the business will be endured.