That way you still have an unpaid rent balance and can evict for non-payment of rent.

Any money left over from the rehab goes to reduce your loan balance.

The current balance is $462K.

It makes it difficult to sell stuff that's been earning that for the past 5 years to buy something that isn't currently returning that. 

80% is going to be extremely difficult to find. 70% is what most lenders will do it at. 

HI Sam,A Heloc pro is you only pay interest when you draw upon the or having an outstanding balance but the con is that you pay interest usually based on prime + margin.

Good news is, the owner on title doesn't care at all and is difficult to communicate with.

The net to my balance sheet is + $700/mo, but it kills my ROI. 

Since I am directly involved in both sides of the business (Realtor and GC) my personal experience is the contracting side is more difficult and stressful.   

Does your complex have any extra space to possibly expand into something that will earn you more money.Have a reserve account with a balance that will help you make repairs and turnover expenses.