With the amount of HELOC funds you have available, I would recommend using this resource to fund the next deal.

. $500 ea. in profit after loan pmt , taxes & Insurance and a small amount for maintenance fund are taken out.  

Purchased at $220,000.Sold               $345,000First Mort      $163,000HELOC             $47,000Selling Cost     $15,0000Net Proceed  $120,000  (50/50 split )Each has $60k in separate 1031 exchange fund.

There are some in the nicest areas and you'll be paying 80k+ a unit there...in some of the less desirable areas of the city it could be 20-25k a unit.

The rest are aesthetics choices that need to be desirable in 5 years.

In Texas according to my attorney it would be a deduction and not a mishandling of deposit funds which is taken very seriously in Texas and most states. 

I would like to own this building outright some day, but the immediate priority is I have multiple homes under construction and need the funds to pay for my share of the new builds (have investor/partner on these new builds).  

Walk away.In order for the lender to obtain the necessary capital to fund that loan, it has to pass an initial environmental survey. 

If they are paid off sell them and use the funds to some how forward you into real estate.

Therefore, you have to resort to using other sources of funding.