Then you need to apply for permit(s) with your local city.

That applies to any legal papers such as wills, deeds, contracts, or any legal documents for anyone else including a company you own. 

Would a 1031 apply (I do not intend to sale)?

I ran the numbers and am confused about what was promising about applying the BRRRR strategy for that property.

What were the original terms when you applied? 

Is it more cost effective to repair cracks and apply stucco/paint or to place sheet rock over it?

But I would just apply for a HELOC and pay off the mortgage with that.

I believe that law applies to the seller if they own at least 4 units, so check if that is the case. 

Self-directed IRAIf you are self-employed with no w-2 employees, you can set up a Solo 401k & rollover funds from a non-Roth IRA as a tax-free direct rollover and then invest in real estate.A Solo 401k has several advantages as compared to a Self-Directed IRA including the following which specifically apply to your situation:Unlike a Self-directed IRA, you can have the account for the Solo 401k at a bank or brokerage that does not charge maintenance fees and where you will have checkbook control.Unlike a Self-directed IRA, if you use leverage (which must be non-recourse financing in either case) to acquire real estate with your Solo 401k the income will not be subject to Unrelated Debt Finance Income taxGeneral Considerations Re Investing Retirement Funds in Real Estate:1.

It’s not about making money on the first deal it’s about building a foundation of practical knowledge that you can apply for the rest of your investing career!