that is the long term plan, is to have a holding company (LLC or C-Corp) with the rest of LLCs under it as non income producing LLCs.

They are late and now past the grace period allotted by the lease.  

I am in the due diligence period and haven't closed on the property yet.

This is very convenient, in my opinion, because it helps you insure that you will have passive income for a longer period of time.

I have a copy of the bill sent to me each billing period but I dont know if they are behind until the next bill comes 2 months later.

If Resident should move from the premises prior to the expiration of this time period, he shall be liable for all rent due until such time that the apartment is occupied by an Owner approved paying Resident and/or expiration of said time period, whichever period is shorter. 

If you aren't thinking you'd be doing another rehab in the six month seasoning period, then the HELOC really wouldn't be of any benefit to you, you'd have no need for that cash until you can do the cash out refi anyhow.

So for example... if you need a new roof which costs $20K a 'replacement value' policy would cover it all however, an 'actual cash value' policy would perhaps determine that the roof was 10 years old and so you might only get $10K and you would have figure out the rest on your own. 

Offer him the rest @ 4%, for 30 years with you doing the repairs.

So you would pay tax on that difference but shelter the rest in the 1031.In your case It looks like your contract price is 510 an there are will be 32K of closing costs.