., right, but then I lose financing options as Fannie and Freddie do not allow banks to lend to LLCs.

You could have an 8% CAP rate property that loses money if your financing terms are bad or down payment is low.

The properties cash flowed about $1k per month.Last year, which is 14 years later from his purchases in 2004, he had to move out of his apt because his rent is now over $4k from his original $2k per month.His CT Properties cash flowed the same for the last 14 years, about $1k per month.BUT... if you considered that his rent moved up another $2k more in rent, the over all effect is that he was losing money.He is also effectively priced out of NYC and moved to a lower cost area in NJ.

To avoid losing their credit rating they signed the property back deed-in-lieu-of. 

Also, in a mainstream asset class like value-added multifamily, I see no reason to take a risk on a sponsor that doesn't have full real estate cycle experience and didn't lose money.

Consider you could lose the deal.

To me, a relationship where both parties have something to lose is more likely to be successful for both sides.

He advised and explained that “Whites” are targeted and “killed on sight” for disrespecting someone in anyway.

My initial thoughts are to use the $30k to knock down the debt to $10k as the much higher interest I pay on the debt means I’m losing money each month, and start again saving from scratch.

I just don't see a situation where I don't lose one way or another.