If you fail, you can raise capital for my projects and will give you another Co-GP title. .......Or you can organically grow your real estate portfolio and credit worthiness &  keep the $30K. 

I would pay them separately rather than giving a rent credit.

Consider putting the property up for sale and get your life back on track, then try investing again.

Plus, if you aren't able to get approved with what you've got now in terms of savings, credit, etc. you can learn on what you need to qualify so you know what to be working towards. 

HighLevelAccounting & Finance: What tools make bookkeeping and financial tracking seamless?

@Hank Bank BRRRR is probably want you want to do.Buy, Renovate, Rent, Refi, Repeat.Before you go all in and either find out you don't like being a landlord or you make costly mistakes, start with just the next one.You'll have some challenges with tapping the equity in the townhouse:1) What loan amount can you qualify with your credit & income?

You would want to look for an owner that has a loan through a bank or credit union or one that has no mortgage. 

I am looking into getting a SPEC line of credit for 1MM or 1.5MM.

Which made my tracking for taxes and such all look super dumb because everything is off by a dollar.

It may or may not show on a credit report, depends on the servicing and you should have the loan serviced.Failure to include the debt on a future loan application is mortgage fraud, wanna go to jail?