If I was in your situation, I'd look et the situation based on profitability, liquidity (or rather the lack thereof) and risk.1.

If you manage a property on behalf of someone how do you liquidate the asset to give the owner cash? 

You can pull out 80% LTV what you purchased it for plus any repairs or renovations.Also with asset lending you need to have a large amount of cash/liquid reserves.

When painters paint cabinets the correct way, they spray an enamel, both for looks and durability. at this point, and after getting everyone else's input, like Dan H says, I think you should just clean it up real good and re-rent it, it's looking like it's not worth it.... 

However, be prepared for management challenges with 12 units, consider the market's volatility, and acknowledge potential liquidity limitations.

So say you only had 20k liquid that day you took that % of ownership for that particular property.

In addition, they told us they provide a liquidation service so you could pull out up to 90% of the limit.

Starting with cash is a great strategy, but I would still consider using leverage to stay liquid for emergencies, which provides financial security.

Right now I have one checking account, and a Individual brokerage account with most of my capital liquidated, Im debating If I should open a new account before I get Pre-approved, or wait until I buy a property to do so.

Other than liquidity, and the chance to put the money to work again (next deal, etc.).