I'm struggling with being optimistic and thinking/planning for the best and balancing that with a realization that things like this are going to happen

Are you including a personal Profit and Loss Statement or a balance sheet? 

.- balance due at completion of punch list.

Most of these cards require monthly payments of something like 2 or 2.5% of the outstanding balance.

Now to be fair and balanced this person had a very successful company and had means..

Why should paying off your balance make it harder to get cash flow?

Here are the numbers, if I left anything out or you want more information let me know:Single-family homeOriginal Mortgage = $114,500 VA Loan @ 4.00% (no PMI)Mortgage Balance: $104,000Conservative Market Value = $130,000Mortgage payment+Insurance+Taxes $756/monthRent: $1300/month Property Mgmt = 10%Vacancy: 15% (military area)Maintenance: 5% (everything is brand new inside)Yearly NOI = $3400A little about this house.

Make sure to keep card balances at or below 30% on a monthly basis.  

The mortgage balance is irrelevant to your friend.  

Credit score, LTV, how many rentals you have, what balance of rate/closing costs you want, etc. all have impact.Just ballparking, you should be able to get a lower interest rate.