I am all for risk taking but I am not in a hurry to go from 2 doors to 100 doors in 12 months so I would rather take my time and save up a good chunk of cash between deals since I like to have more than 25% to put down and have reserve left over for cap ex or other expenses. 

Part 2: I believe you will treat it as a new acquisition and start the depreciation schedule over at 27.5 but your basis will be whatever is left over from what you've already depreciated.

If there is anything left over I would return it, if not and they owe more I would probably consider forgiving it vs. suing them to try not to provoke them filing a suit as well. 

We successfully closed 3 deals just last week by partnering with a local lender that currently offers 10% down, 30-yr fixed as a 2nd home loan, which is a great way to get started, yield higher cash on cash returns, and leave some capital leftover for repairs, upgrades, furnishings, reserves, etc. 

It's about what is left over after 3 years that will matter.