My husband was able to consolidate and re-finance the debt after we executed the deal but this was only possible because we bought a VERY modest property of 70k as a learning tool to really see what buying a home in CR would be like. 

I don't believe you would properly replace the debt in this situation.

The total deal with debt was above $10M but the total equity in the deal was around $4M. 

Taking out more debt does not sound like the best option IMO.

You can then get financing either through refinancing the entire debt stack or getting a second mortgage with the same bank that did the first mortgage.  

There is life stages to investing, and the math is clear that strategic debt use, strategic leverage, pyramiding, appreciation, is the wealth generator. 

Actually you'd never hit that because eventually the debt pushes you into a margin call and forced sell and you'd be at or near $0 in just handful of years at best. 

Trying to cut my losses as the borrower got all her unsecured debts discharged through Chapter 7.

If the proforma has the rent roll at $1400 a month, there is a discrepancy that could lead you into a bad assumption on your business plan.Also one caveat, be aware of physical delineations around the area like bridges or railroad tracks or a canal. 

From what I’ve heard in a piece by Forbes, focusing on unique features can lead to higher long-term rental satisfaction... especially if your tenants want a few animals or more outdoor space.