I do have property management in place, so could self manage if thing went awry to reduce my monthly expenses.

HH income is about $130k excluding bonuses and we have no other debt.I'm having trouble determining which scenario is the best approach given the details.Scenario 1: Refinance the $88k to 30 year, no cash-out, drastically reducing the payment for us now and for rental cash flow.Scenario 2: Cash-out refinance up to 70% LTV.

When you take out full height walls you reduce the structure's resistance to wind and earthquake forces. 

Time to put your hard-earned RE investment dollars to work where your assets to society will be appreciated. 

Recycling isn't about making people feel good, it is about reducing landfill waste, keeping the air clan and reusing natural resources to reduce cost.

You can see if the owner is willing to hold off for 6-12 months while you hustle to earn the money and then buy it.Personally, I don't suggest you borrow your way to wealth.

If the property owner Properly contests the lien, the time to file suit by the contractor is reduced to 60 or 90 days. 

Again, your attorney (experienced in REI, not just a RE transaction attorney) is your best advisor.If all of your partners are both investors and GPs, then a JV should be sufficient.Money spent on professional advisors, whether attorneys, CPAs, etc. is well spent and will improve your returns and reduce potential headaches in the future.It also looks like you have a bridge loan on this property which, given this market, could be an issue at year 3. 

If you have no skill in #1 and #3, or if you have a busy career earning a good W2, then you should stay within your lane and just be a passive landlord, but accordingly, you need to adjust your expectation.

The rest of the year had reduced occupancy and reduced rates.