The point of confusion for me is the stories I've read about liens causing nightmares.

I have ran the numbers at fully rented with guess on utilities cause it’s “all bills paid” the rent also hasn’t been raised in 10 years.

Do both loans in an entity so you don't damage your debt ratio further.  

Those are insanely strong seller's market numbers.I don't know what's causing it, but until it turns around, I don't see prices retreating.

You don’t say where the property is but I would also add that Philadelphia is more tenant friendly than the rest of PA and recently passed a law regarding non-renewals without cause for M2M leases.

If someone buys a condo unit at auction where the unit has a leak that has caused damage to the unit below is the new owner responsible?

#3 this is also a good option, IF the refinance doesn't cause your 7 unit to go into greatly reduced or negative cash flow. again need numbers here to see if this is an option. 

We don’t want to worry about lawsuits and we don’t want to worry about the renters causing expensive damages to it.

I've enrolled myself in school to take a real estate course to get my license (cause I read somewhere, that that was necessary) and a business management course along with an accounting course to freshen up on my skills.

And then you can start implementing measures to ensure your tenants pay you and don't damage your property.Good luck!