Any improvements that were done over the years had to be done to code of that year . 

This is a good thing if you want to do some rehab, but again, you must be very strategic about how much money you put into a place, knowing it won't naturally appreciate beyond what you create in improvements.4) We're having a bit of a zoning crisis.

If credit is the issue, talk with your lender to run a credit simulation to see what actionable steps you can take to improve it.  

Improve the grade if water flows toward or pools near the house.

Quick tips…✅ Everyday Homeowners - track all home improvements as you could qualify for energy efficiency home improvement credit - new exterior windows, new central A/C, new hot water heater, new insulation material.✅ Investors - Keep detailed records of ALL rental property expenses to reduce your taxable income - helping your CPA spot additional tax saving opportunities.Imperative to use a CPA who is well versed in Real Estate tax code.My CPA is just that - DM me to get his contact information....

And keep in mind that the rate on the 2nd lien will likely be 10-12% so depending on the cash flow it might not actually yield that much cash to you at closingMore importantly, it's just more debt so ultimately it sounds like you need an income-producing event to actually improve your situation and avoid some of the consequences that you mentioned

I agree they had communication issues during a transition period that we dealt with, but things have improved from last year. 

After some minor maintenance projects and improvements, have had very few issues and cashflow has been slightly better than expected.

I also wonder how this is going to work.. you cant tax a parcel that has lost a 5 mil dollar improvement ??? 

US Treasuries will not see their credit rating improve, and will, within the next 12-24 months get another (small) downgrade, inching up treasury yields.