@Bill S. apparently Colorado thinks people don't have to pay anything but rent. 

Since your planning to pay cash, if you use hard money you can spread your money out to multiple assets in a short amount of time faster, however if you pay cash you can have better numbers and make higher offers and of course get better deals (just wont be as fast to scale since your money will be locked up for seasoning).

You have a balloon coming anyways, so all you're buying is a few months of lower interest and in the meantime you're burning days trying to figure out how to pay for the rehab. 

I almost feel guilty with how little tax we pay but dealing with it!

Get a new property manager and inform tenants to pay to new bank account. 

Now you need to figure out how to find deals and pay for them.

Do you really want to pay these people to be the communicative link between you and your rental clientele?  

Either they pay or the the courts kick the tenant out.

And as @Jay Hinrichs mentions, in some states the borrower can reinstate and you become the owner of a paying (or in many cases, a non-paying note again) and you need to start the foreclosure process all over again.It sounds like you may have a tape from Kondaur, they are notorious for taking their loans right up to the foreclosure then dispose of them. 

I also have a primary residence with nearly a JUMBO loan at a high interest rate and I own a vacation place in cash (small trailer not worth much money but i also own the land) in a different state that I pay RE taxes on.