Your biggest issue is that $50k may not let you get a nice house and have any reserves.

We went from buying light rehabs to buying major foundation and mold issues to make numbers work until even that did not work anymore.

The timing does suck because this issue came out of nowhere at the end of their lease.

If the drywall cracks in the next year or two, or the doors start to stick, then you likely have a larger settlement issue going on, and will likely need to call a foundation repair contractor. 

My business partner is able to issue IUL.

However, our tenant turned out to be problematic—late payments, issues that led to an eviction, and additional repair costs before we could relist the property for sale.Now, after months of making mortgage payments out of pocket, we finally have an offer.

If you do have to move because of a job, you would be safest (in my opinion, i am not giving legal advice or financial advice), i would sell that property to ensure that you did not just purchase with the goal of moving out early and taking advantage of lower rates and lower down payments for purchasing your home as a primary residence. 

But I am running into issues on the cash out refi side.

The issue was a person sold their home subject 2 and the person who bought it stopped paying.

I am eager to start but can't get around the glaring issue of not having initial capital so I was wondering if there are any methods you guys would use to raise capital if you were in my shoes or is it just time to put my head down and put in long hours?