It's definitely hard to find good people to work with. 

I am refinancing out of cash purchases and hard money purchases. 

You are correct in saying that good deals are hard to find in our hot market but I'll be glad to keep an eye out for you.  

I'd go up to them, and simply state we can do this the hard way-- and you will play by  regular rules, and the eviction will essentially make it insanely hard for him to find a place, or he can do the easy route.   

There are still deals to be had in my market with my current trend of rentals, however I do agree that they are hard to find compared to a few years ago.

Without knowing how the existing duct work runs, it's hard to tell if you can utilize the exiting ducts, but if you can, you may be able to do it by making one or two holes in wall/ ceiling.1. leave exiting unit in basement to cap off feed in apartment 1 and 3, so this furnace will feed apartment 2.2. install new forced air furnace in basement and tap into 1st floor ducts to feed the 1st floor ( they should be running around the basement ceiling3. add a unit in the attic, if you can tap into the 3rd floor ducts then great, if not, then run new ducts around the attic to feed the 3rd floor from the ceiling.

If the property isn’t in livable condition, and you have no other properties that you can borrow against, hard money may be the only option. 

I am a new investor and just flipped my first house and am doing a second with my own capital and hard money.

I suppose that's what can make it so hard.

Are they a hard money lender or conventional?