Floor guy says he would put a transition piece and it will still look good, but I don't know if this is considered done properly. 

To prepare for it, just prepare a 1-pager summarizing the investment with what you laid out above plus some pictures an more background info on the tenant.For you personally or the entity that would be borrowing you or your accountant should prepare a balance sheet and income statement.

I would even be interested in a rent to own situation as long as the remaining balance can be paid off in a year or so.

The problem that I am needing help with is...if I have a 3.25% interest currently and the bank is offering me a 4.5% cash out refi that will take care all of my cc balances and give me enough to purchase new property, is this a smart move to go from a 3.25 to 4.5%? 

This is a messy situation and I don't know the answer.When Calling 911 Makes You a ‘Nuisance’ and Gets You Evictedhttps://www.nytimes.com/2017/11/09/opinion/nuisance-ordinances-eviction-violence.htmlMy lease states the landlord will change the locks for a domestic violence victim (upon proper documentation).

Per my discussion with him, interest is due monthly based on the balance of the loan, and the HELOC is renewed annually.I’m not sure I fully understand how the payments for the HELOC would be calculated.

I have been working there every day after work (5pm-8pm) for about 5 months now to learn first hand how to properly acquire, rent out, and exit multi-family properties. 

It all comes to what you are investing in, what is your experience with that, and proper due diligence... 

A balloon mortgage that does not fully amortize over the term of the note, leaving a balance due at maturity, so placing those extra investments (7,000 extra payment) in a better place would be more beneficial for you.

The fact they are complaining online might be an indication the property manager dealt with them properly so be sure to ask the manager for their side of the story.I hope this basic guide helps.