My original plan was to put a HELOC on each unit and pull 80% of the value out to recoup my cash, however now I’m considering doing a cashout refi in six months for the same amount or more.Using the HELOC, my original plan was to take a 50k line on each unit and use all of my cash flow (no money set aside for reserves/profit) to not only pay the interest but also the principle down.

I know this doesn't directly answer your question, but setting something up like this for the future would likely eliminate this problem next time. 

It seems to me if the tenant truly is willing to offer up $300K down that he is serious about the property and that he is confident they will have financing set up by the time their lease is up (22 months).  

Not taking full advantage of all the incentives they provide for the work and the life is setting yourself up for a fall.

You don't use Halloween as an object lesson to teach your kids the same principles on wealth distribution and profit?

Setting that and sticking with it is how you accomplish a "job well done" and stay on budget.Look, I am a sucker for a sob story and a go getter attitude.

I like to have an appraisal done as soon as I take possession to set that base value.

After several phone calls and meetings, with accountant, financial adviser, and attorney,  (my team) I have decided to go with setting up a new LLC for this property.

I'm definitely looking at ARV in setting the final rent.

In our area, the town does provide recycling cans - usually we go and get them from the town when we first set up an apartment - if the tenant breaks or loses the can, they are responsible to go get  a replacement.The town does provide garbage service and the tenants can put out up to 3 garbage bags at the curb on pick-up day.