For paying out the second - options on the table:Improve property and refinanceUtilize a business loan with combination of current line of credit w/saving cash flowOr last re-sort sell the property, or sell another property we can move on. 

I know I kinda combined two different threads into one - it seemed that the LLC part of the equation was affecting the method of financing.  

And I think a combination of improvement loan and private money is very do-able-- we have come up with it before and can do it again.What would your first steps be?

So far, I believe a combination of fix and flips and buy/holds are looking most appealing to me for the long term.

If so, should I wait until she's working so that we have a higher combined income and can get approved for a higher amount?

So as long as the structure of the second allows for that, when combined with the terms for our 1st, we're good.

There are a handful of such lenders that do these types of loans, including:First Western Federal Savings BankNorth American Savings Bank(I'd include links but BP complains when you do that)You cannot combine personal funds with your 401k to make a purchase.

Highest percentage is 7%,  my loan is actually 6 or 7 smaller sized loans combined.

I will take that and combine it with what I will be paying month to month with principal and interest to get a baseline.

Water/sewer are combined and are tough to get set up in a tenant's name, so they're usually just billed at a flat rate, or included in rent, but I have heard of companies making tenants get the accounts set up.