I suspect this is the biggest of a slightly long list of issues with this investment.- is this your first section 8?  

However, understanding their requirements—such as down payment percentages, reserve requirements, and loan-to-value ratios—is key to getting approved.One of the biggest advantages of working with portfolio lenders is their ability to fund deals that traditional banks might pass on.

I think that the biggest take-away for me in the project is to avoid crawl spaces - I am claustrophobic and hate to enter crawl spaces anymore. 

In some instances, it was difficult to locate the source of the high water bill, but ultimately, it was discovered that there was some leak on the premises.

One of the biggest benefits we can offer over a hotel or large apt buildings. 

This is the biggest need in history for the wealthiest generation in history.

What water source is in that area?

I agree with @John Underwood that insurance is the biggest hurdle.

Depending on where it is, your biggest concern should be will the new furnace, AC and hot water tank will still be there after you close.

Either1) your startup takes off and you can distribute profit fast enough to pay off your debts, or2) you find another source of $100,000 a year (which barely even starts to pay down the $300k, but might provide a better chance for a better loan), or3) you BK and possibly lose the rental houses to creditors (hopefully not, but we don’t know how they are held), or 4) you sell the houses, take the tax hit, work with the IRS on a payment plan whose interest will be much lower than your CCs, and focus on the startup.