The terms @ 6.75% and 30yr fixed are very good.I think the more pressing issue is the inadequate funds needed for proper repairs.I am a believer in creating a formula that works for you.

If any Lender presses the issue, request for the Lender to send in document form a directive that states that a Buyer can not be a corp., esspecially in a contract where they are not a party.

@Guillaume Fortina As @Brie Schmidt points out, you will very hard pressed to find a buy/hold investment in the neighborhood that you mentioned that even cash flows (at all) right now, assuming you are using debt.

Never mix accounts because it’s far too easy to accidentally spend the security deposit funds.So, if you are sued, and you have your Security Deposit setup as a Security Deposit Trust Fund Account, at least you have the Security Deposit left to pay the tenant(s) back if you lose the business.Nancy Neville

-HouseHack: Living in your own unit has MANY advantages and protections (loan wise, and housing laws-wise which you do not want to even step and accidental toe over the lines (showing favor nor discrimination).

If you don't have any proof of the condition of the home before the tenant moved in, you'll be hard pressed to even hold on to the deposit for damages. 

Real estate prices will either get pressed down or cap rates will be going up.

They were basically accidental landlords, who worked hard at their other professions, who were lucky to have good tenants.These building will pass down to the sibling ( my friend) and his brother as inheritance and will be 50/50 ownership.

I also have an accidental rental in NJ that is more of a rental of necessity that an investment property.

Press on regardless; you've got the right idea.