There are different benefits to either one both can be poison if you don't have adequate representation.That said if the homeowner did a chp 7 didn't reaffirm his debt he can/could of walked away without any ramifications.

SBA is rather expensive with bonding and it's a federal debt you'll never shake lose of until paid off in full, they will take your first born, second born, drain a bank account and take your car all in the same day!

What is the approximate value of all the properties and what will your approximate total debt be?

If it were me...I'd consider my time, interest, and status of the debts.

And for other reasons, it's important to know what the debt service is so you know how to structure a deal. 

I'm not sure you are considering factors such as, off the top of my head: 1) unlike the have-a-pulse-get-a-loan scenarios of yesterday, they are required to have proper debt-to-income ratios and meet reserve requirements so as long as they don't lose their job for an extended period, they've proven they can afford the payment; 2) even in a down market, they will have to live somewhere, so unless rents are much cheaper, which is unlikely, it makes more sense to not ruin their credit, keep paying and stay where they are, especially if they've improved the property at all; 3) these loans are much more likely to be 30-year-fixed, not the ARMs of yesterday that adjusted up to a surprisingly unreasonable payment (many didn't understand what they signed up for until, Wham, the payment doubled on them, so they had to walk); 4) they pay MIP, upfront and monthly, so there is some protection for the lender if they do default.Many of these people would be stuck paying much higher rents, building others' equity instead of building their own, without FHA loans.  

The company has no debt and about $5.000 in other assets.

My monthly financial needs are minimal, I carry no debt. 

Based on that rule you will have $2400 in monthly expenses, which only leaves $2400 for debt service and cash flow. 

It also depends on which type of institution has the debt.