Because wouldn't the HELOC be accruing interest everyday and cash out refi have been the better choice?  

@Elenis C. out of curiosity, was there an inspection done during acquisition? 

@Jacob Sampson just put of curiosity, what is the risk of having debt?

How many of your 182 units are currently vacant out of curiosity?

In general, we try to have residents accrue Rent Credits at a pace that will allow them to acquire a home within 5 years. 

You are better off to accrue a few 4 units since is residential and enter the commercial for loan of min $1 million.

Lender wants to change that which I don't so much as object to as that he is saying no professional lender does it like we've been doing. there are lenders that will accrue but 90% want monthly payments  if you want accrued interest expect to pay more 

@George Chung Out of curiosity, how's your property doing now? 

I understand it accrues 8% interest as well, but I don't know how to enforce that.If that fails, I'll just move on with life and maybe if he needs to clean up his life w/in the next 20 years, he might try and make good on the judgement.

We have made a great deal of progress and have $14 million in the bank and cut off most all of the payroll expense and are quickly getting out of lease commitments and terminating other accruing expenses.