The lesson here is never buy into a property that you cannot take your family to and continue to research the area if you are banking on the neighborhood to be improved.

I would look FAR AND WIDE for someone to do an investment property HELOC -OR- go to a bunch of banks and CUs (including who you bank with now) to find someone to provide an unsecured (or secured if you have other collateral) LOC to get rid of the high int debt.

At least that avoids the banks closing costs right now.

Lastly, they’re going to want a higher interest rate than they can get from the bank for taking the risk.

Here are five dangerous provisions to watch for in an Operating Agreement:Dangerous Provisions to Watch:Authority to incur debt without investor approvalPower to make loans to other entities/projectsAbility to cross-collateralize with other propertiesPermission to use investor capital for other venturesCommingling of funds across different projectsWhy These Are Potential Ponzi Indicators:• New investor funds could be used to pay existing investors• Project-to-project lending can mask poor performance• Cross-collateralization puts your investment at risk for others' failures• Commingling enables masking of financial problems• Lack of project segregation enables fraudulent schemesProtective Measures to Look For:Strict single-purpose entity requirementsProject-specific bank accountsDebt limitations and investor approval requirementsProhibited related-party lendingClear fund segregation requirementsProfessional Best Practice:Request bank statements showing separate accounts for each project.

It is very common and banks are fine with it. 

.: Property managers, how do you collect rent from tenants, keep your management fee, and send the remainder to the owner without it reflecting as if you received the full rental income in your bank account?

Commercial loans are usually held on the books of the originating bank.

Would a bank even allow us to mortgage multiple buildings on a single lot without it being subdivided?

While some buyers may shy away from the 7.125% interest rate, others who are familiar with the "Subject-To" strategy or are more flexible on financing terms may see it as an opportunity to acquire a property with decent equity and no need to qualify for traditional financing.