Hey, as an owner occupant no big deal, I would of had a mortgage/rent payment anyway..

Payments are made through the towns lockbox service and those payments never come to her.This fine and dandy however I travelled to the address where the bill is sent and neither of the owners of record live there

They are fully rented (month to month) and gross ~$64000, with $17,000-$20,000 in annual expenses, before loan payments and management fees. 

In a lease option or subject to agreement, it is my understanding that I as the investor would pay the seller monthly payments.  

It isn't easy to find extra money for a down payment, at this point and so it kind of leaves us in an undesireable spot to be in.

I pay an introductory rate for the first two years, my current payment on 21k is 71.34 a month.

I want to refinance this property and take out the money to buy another rental property (or at least put a good down payment for one or two).

Typical bank draw cycles are at least 30 days plus a few days for the bank to process.If your contract stated payment immediately upon completion then you have a solid argument.

As I do not make much to put a whole lot for down payments.

Myself and my Wife currently own a home (in my wife's name) that I make the payment on.