Not having any idea as to the potential expense involved in foreclosing especially if the borrower file a bk8.

Especially if you are in markets with opposing high seasons, although finding a winter-peak market is tough in the lower 48 without spending big bucks. 

If it is vacant, you feel confident and comfortable with the other contractor after doing your DD AND they have a lower quote, why not give them a go?

I would say, you may be able to get lower rates than mid 8s as my lenders are high 7s for a similar scenario but you may be tripping over dimes to save nickels. 

You have a leak to repair with some cosmetic repair to the lower unit, and your insurance is doubling.

Other than lowering my DTI ratio (which is what I'm focusing on now), is there another way to realize that equity or am I stuck with dead equity until I can get that ratio to a better space?

Explore Exemptions and Deductions: Take advantage of any available exemptions and deductions for which you qualify to lower your property tax bill.3.

You can often get better deals on a 50-unit, but you will have lower operational efficiency than you might have on a 200-unit. 

Gross rent less all expenses. is NET.  

We have kept up on maintenance and we just renovated the lower level and upgraded the plumbing so we do not anticipate too many issues, but you never know what tomorrow brings when you have a 60 year old house!