I owe 55k - a no brainer to me.

It's always been a scary thought to me since your buyer pool is so limited and your holding costs are so high!

Can you explain to me what your reserve requirements are?

Spending alerts are targeted to each category so you get a bunch of them which desensitizes them to me.3.

from your first sentance of who brought the project and thinking of Texas rehabbers I could sense trouble.It happened to me there as well.. now i could afford to take the hit.. but that is ONE TOUGH market to workeven when things went well ARV and sale price never meshed .. its  a local experts market.. and contractors dont need to be licesned.. this simply is not surprising..thanks for posting this is a good warning to others who think fix and flip is like TV.. and to be uber cautious in Texas.

But I'm well diversifed in the market as well, which has been good to me.  

Commercial world lock in for a minimum of 5 years -some lenders are allowing 7 and I am exploring 1 that is a 10 / 1 arm very appealing to me personally2.)

Seems to me that a property you bought for $18K, and did some rehab on (let's assume you spent another $10K on that), and is now appraised for $35K, and renting for $775.00 per month, is a pretty good return on your investment of $28K.

Is it safe to assume If the Deed does get issued to me then I’m good to go?

All the same whether refinance or purchase.The property as you describe it sounds like a duplex to me.