PIF them if you call each month (Pay in full).Good news is when you go to do a Refi, you can plan ahead and pay the cards off a month and a half before so they report the zero balance, your score goes up immediately.Also, two cards is not enough,  4-6 cards start helping your credit. 

They have knowledge that you may need and as long as they pay rent I would slowly start bringing them up to current over several years so as not to have vacancies.  

It’s very common for people to commute an hour or more to jobs in NYC and a lot of those people could wind up choosing to live in places like Nassau County and north eastern NJ.

Just a quick glance, showing rent of $3400 and a sale price of $450,000 says the property is way over priced.

If it was good inside they would have showed the granite, SS appliances.This is one of the oldest immigrant route and as such I have a feeling the local crime stats can be higher.  

If you lose your job before you repay this money it would likely be considered a distribution and then you probably have to pay income tax and a 10% penalty on it.

They then have another realization that “sweat equity” is actually hard and requires tools, time, and a know-how in order to do the job right.When you’re under contract you’ll come up with a scope of work and budget, submit it for approval to the lender, and you’ll be able to make draws once you’ve closed and started the project.

@William HustonLot of that depends on your goals and a big part depends on rent to value ratios in your area.  

I'm recently US.Army retired and a chef. 

And as you said, you will also likely incur realty transfer taxes.