This suggestion sounds reasonable for us to at least find out the situation of our houses so we did hire a new property manage company to inspect our houses.The inspection reports sacred us: House 1 ("rent-ready") need a $14,000 to get it ready to rent; House 2 required rehab has nothing done.We communicated with Morris Invest about the inspection results.

Any recommendations for a Seattle/Puget Sound foreclose attorney?

It sounds like you are infected with a very expensive disease I call the "hardly waits".How do I know? 

Sounds like there is some weird stuff going on with the taxes and a possible auction.

It sounds like this 30K is not going to make or break your retirement, and is something that you're willing to take more risk on. 1) how upset would you be if you lost the entire 30 K?

I'll share what I recommend for starters but it sounds like you're already doing a lot of those things!

This 5% down option sounds very interesting! 

With that said our deal was: we would buy the property increase value (we have been able to increase rents and the commercial space wasn't rented at the time, we are about to rent that out) and then refinance, the thought was we could get the initial cash out after increasing the value of the property and repeat (sound familiar) - after which we would be 50/50 partners on the property.To my question - since this is a commercial property, would it make sense and is there value in converting this to a condo, where we could get more favorable terms on the residential units (30-year mortgages and 20% DP) versus the terms we have right now?

$150K all in and $2300/mo sounds like a good plan.

@Matt MillardIt sounds like you don’t pay much tax right now.