In my 30 years, I have seen where franchisor’s have deals where you may have reduced or no royalties for a period of time or until a certain weekly sales average are met - but not often.  

Some investors I work with only use the hard money for the acquisition to avoid the fees and inspection delays during the construction period, when the lenders provide construction draws.

Maybe try it with only one of your rentals for a short period of time and see how it goes?

You want to be able to pay off the LOC at least 1 month out of a 12 month period usually to show the bank you aren't high risk.

College counts as part of your 2-year history.Regarding hiring a PMC, if this is your first property period and you are working that many hours, I'd comment that you have two options:1) Hire a PMC2) Buy a duplex and live in one side, so you can be more hands-on and available.Otherwise, I don't see this going well for you.

I assume you are outside of your due diligence period since you're at risk of losing your earnest money?

You're paying someone else for that luxury but it does nothing for personal wealth building.Lenders require 6-12 months seasoning period for a cash-out ReFi.

With a 2% annual increase of rent and variable operating costs the actual "recovery" timeline would be 16 years, at a 3% increase it would be less than 14 years, etc.Also the principal pay down and property appreciation during that time period can be very valuable.

What is the month to month notice period in your lease? 

On Jan 10th (this is the grace period we give this particular set of properties) he didn't have Jan rent.