I'm also hitting the 2% rule with $800 rent and feel I have room to raise it as I am on the lower end in the area.Since I bought my first condo with cash I was able to leverage that equity with a HELOC (5/3 Bank), they appraised my property at $58k and gave me $37,500 (65% LTV).

Any advise on bank-owned properties below 10k.

One of the bank records had a different name.

Ask them to get a current payoff from the bank to see how much that would be.

@William Lewis you're correct that closing costs on HELOC is much lower, usually just an application fee along with an annual fee (some banks will make you pay for the appraisal as well). 

I got a little over $17,000 back.I inquired on getting a rental property next, only to find out that my debt to income ratio is slightly too much to get a loan through the bank.

For what it's worth, your PM is the one delivering notice, and he should have explained this to you if asked.

I recommend shopping around the local banks for terms. 

Most likely the loans have a “right to call “ clause, which means technically the bank can require you to immediately pay off the loans when you transfer ownership.

Just waiting in the appraisal to come back from the bank.