If you can rent 3 units for $2,000 you are close to breakeven.On the plus side, you will have a highly attractive asset and several decades without much cost of capex and repairs. 

Hotels are the baby of real estate investing and running a business.Unlike any other commercial asset class, hotels are extremely labor-intensive to run but can spit off ridiculous cash flow.

If the current tenant doesn't want to stay at that rate, the current owner has no problem with me replacing him with a new tenant.8-12% is the property management rate according to Google in my area, but I plan on managing these myself until I have an amount of units that makes sense to have my Realty Team manage it.Owner needs cash, which is why he is starting to sell off his assets.

Yes I definitely need to obtain a network of brokers locally here in the commercial/multi space.

Is it in an area where assets have been or you believe will have appreciation? 

Account Closed said, income and assets are the only "hassle" with a conventional loan.

Sounds like it is best to either use the HELOC or obtain a conventional mortgage rather than using a HELOC and then a cash out refi.  

The one's that act as if the revenue is the reason we buy, not the asset itself. 

You can still do a 1031 exchange foreign to foreign asset.  

This allows them to get more capital so they can make more loans without having to grow their asset base, while also maintaining their relationship with the customer through monthly payments.