What steps were taken and what was the penalty?  

If so there is also likely a prepay penalty. 

The downside with portfolio local bank money is that the rates might be higher, the terms shorter, the introduction to new loan facets like balloon payments, pre-payment penalties potentially, and others.

And, you can pay back with no penalty.

Cash: $40,000, 401k Cash out (after taxes and penalty): $35,000, HELOC: $85000 limitInitial Rehab Estimation (are these numbers still relevant?

We ended up with penalties for not filing some things because our new CPA did file appropriately and we came to the attention of the local taxing authorities.  

As @Russell Brazil said, if you are caught, you will have to remove all unlicensed work and start all over, With penalties and fines.

We'll allow you to break the lease with no penalties and you can find a place that works out better for you.

thinking of moving it to a self directed IRA and invest in big fund but I still can't touch the money until I'm 59.5 yrs old and i have no passive income coming from it. or should I go ahead and close out the IRA and take the penalty and tax which will leave me about 28k to 30k and then I can invest into real estate and get passive income tax benefits that I can use now?

Garbage: Spray paint unit numbers on each container, have STRONG language in your lease regarding expectations and corresponding monetary penalties for not following.Snow removal under 2": Wouldn't supply shovels as they will break oand disappear.