I think that losing the HELOC should create a little better cash flow but at the very least it will put some stability into my debt service. 

If you are saving on taxes, it generally means you are losing money.

I run the numbers with even 5 or 6% and they great but 7+ just not good Just to add... if rate alone is making or breaking your deal, then it's already a losing deal. 

That's a recipe for losing everything. 

You walk away slightly ahead with the rents collected, 2nd lender loses at least $50k of his $95k in selling costs, and other expenses.

I guess losing my parents all before 30 has just been a hard obstacle but this too shall pass.

Fixing a class B doesn't produce amenities that Class A offers, otherwise you're losing sq ft if you add a gym/shower, etc.Anyway, happy to get updates, but I think your leasing will be at 0 for 12 months.

Of course, the buyer could lose their job, but the spread between cash vs. mortgage has to be more than most people think.

This means I will take a significant loss to ensure investors do not lose their initial investment.   

Since the answer is probably not, they won't, is it really worth the risk in you losing everything you have in that asset when you purchased it knowing full well you weren't allowed to have a unit down there?