It depends on what your contract allows for ... and suing will take time and cost money. 

Building cost has almost doubled in the last 4 years taking B and definitely C markets out of the picture for new builds.  

I would speak to contractors to understand what this will cost.

Only reason i found out is because the tenant notified me, not even the property manager.

We never use extensions for the same reason that @Peter Tverdov mentioned, we improve the lease every 12 - 24 months. 

I'm looking for a PM group that has a reasonable monthly rate, manages tenant selection well, addresses property issues with quality, and conscientiously and actively turns properties when vacant. 

This is an email I just received from their rep:"The initial appraisal cost would be paid by ReadyCap but the expense would be taken from any from the sale/refinance and settlement to release the lien.The plan would be to determine the amount of equity based on the updated appraisal and first lien and then negotiate a settlement with you for the release of the lien.

Are we allowed to ask how much Royal Legal costs on this forum?

I'd start by having a realtor walk through it with you and determine how much things would cost to do and what it would add to the value of the home. 

THe best I have seen is up to 89.99% LTV on a second meaning you'd still need to come in with 30K+ closing costs.