What would you do in this situation:Business: ManufacturingCommercial building valued at 2mil550k left on mortgage800k Line of credit (650k balance)Bank is demanding line of credit balance to be lower than 50%Business isn't great, we were unable to show any real profits to satisfy the bank. 

With the recent cuts in interest rates by the Fed, mortgage rates are hitting all time lows, and the demand for refinancing options have also increased. 

It seems there is demand for some out of the way places.

As for the other items it really depends, does the area demand better fit and finish, do market rents support the expenditure?

This “C-Class” neighborhood will have the highest demand and will be where most buyers can afford.Cash flowI would encourage you to get a property in a “C-Class” neighborhood where the cost to rent ratios tend to be better than in other class neighborhoods.

Those retailers just mentioned are getting a huge push from demanded product.

So whether you keep for rental for however long or decide to sell, it is the most desired type of housing and always has a strong demand.

You may be limited slightly by who would accept it, but I have never seen a drop in demand between my 1st floor and 2nd/3rd floor units that are all same 2 bed 1 bath configuration with same amenities and size.

Demand for clean, safe and well maintained rentals is strong and recent economic events will likely increase demand. 

I'd be able to walk away with around $80-90k after commissions, penalties etc. etc.I'm not sure if its a smart to walk away from a property that's always going to be in a in-demand market, but being able to start buying cash flow properties with that much cash on hand would likely give me a much better return on that equity?