Also, there are hard money lenders that are using their own capital/balance sheet to fund & hold loans, especially on the short term side (12-24 months). 

You'll want to strike a balance between what's fair for you and them if you want to keep them.

What is the loan balance?

What I do currently:Allocate a bank account from which to pay all expenses associated with the rentals.Deposit all rents into that account and use it to pay rental expensesAt the end of the month withdraw whatever money was left over to bring my balance back down to $10k and use that to pay down my personal mortgage.What I think I should do for cash damming:Allocate a bank account from which to pay all expenses associated with the rental (Done)Deposit all rents into my personal account and use them to pay my personal mortgageAt the end of the month transfer whatever money was spent in the rental account back in from my the rental LOC to bring my balance back up to $10kI can now deduct the interest on the LOC which I'm not longer paying on the personal property.

My interest rate will go up from 2.75% currently to 3.375 and my mortgage balance will go from 262k to 510k.This is about the lowest price I’ve seen on a decent duplex like this that is in a good neighborhood and doesn’t require major renovations.My goal is long term - to be collected $8-10k/mo by 2015.

We plan to pull out about 100k to pay off some the debt from materials for the rehab and use the remaining balance to purchase our next two properties.

This was actually something that all the tenants who had balances liked.

The outstanding balance is $396,000 that is accruing interest of 9.75% on a daily basis as it is in default.

I have a tenant who paid only half the $1,200 rent back in September 2019 with a promise to pay the balance in installment payments. 

So far the water mitigation company has been very patient with me in terms of paying off the balance.