but I don't know how to finance the remodels needed, because each unit will be remodeled as tenants move out and not all at once (All the units are currently being rented aka instant return).

We had a blast and my kids loved it too, but there wasn't much financial return besides appreciation...time to sell!

Even though the income from the property has been reported on our joint tax return for over 15 years (farm lease).

Also, I now use less leverage as I don't need to maximize Cash on Cash return %, but rather prefer reduced risk.  

Earnest money has yet to be returned, has been 2 weeks since contract considered "dead".  

It's factored into the cash-on-cash return and increases it so it makes the returns look much better and the property more attractive in certain ways.What is this principal reduction?

I secure the 20% needed from a private lender; how does the private lender get his return? 

Gather up your transcripts, diploma, 3 years tax returns & W-2's (if you have that many), 1 month of your pay stubs ( if it's direct deposit they still send you something) & 2 months of your bank statements and find a good lender to get you approved through FHA.

These lockboxes require a combination to access and can be easily changed. 

No doubt, this property will generate great return. 18%ROI - We bought it for 32k+17k Reno; all in for $49k... in a very desirable neighborhood.