@Tony Roberts I would doubt if anyone will do a 10 yr loan for a flat 10 percent.

The other showers have new valves and cement board.

Without a doubt! 

My motto is "if you have ANY doubt,  stay out!"  

With  4 kids and a career I doubt I would start from scratch with something time consuming and completely new.

Doubtful. 

There were certain conditions that made it repayable, you seem so well versed on it you no doubt know that.

This will no doubt continue, despite new regulations, but cities will likely toughen up their enforcement when given new powers.I owned vacation rentals back in the day when Scottsdale required a 30-day minimum stay and they cash flowed well.

Management will be 10-12%.I doubt that a lender will do a refi and let you keep <3% equity in the property.

Investors do it when it is a meaningful rehab and they get high leverage, but if your HVAC replacements are thousands of dollars, I doubt you'll find a hard money lender to provide that small of a loan amount.CapEx can always kill a deal's returns if you don't account for it appropriately.