She has the keys so she has possession even though she never moved in.What should I do?

When we speak about equity build, that refers to factoring in your 120K debt shrinking as you own the home (thus there is real "cash" you are "earning" if you hold long enough).Equity build is important - aside from tax benefit and appreciation, it's why you investing in a corporate bond at 4% is less appealing than in a home that yields 4% after debt service.

There are debt companies on the commercial side that bought shorted senior notes from banks 2 to 4 years ago.

You are correct that in most cases, any commercial loan to a smaller/not established LLC is going to be personally guaranteed by you - that said, these still don't appear as residential mortgages on your credit report, so although you're guaranteeing the loan it won't appear as a mortgage (or any debt for that matter) on your credit report. 

In order to pursue adverse possession in California, one must have pay the tax note for the property for at least 5 years, and have open and notorious possesion of the property.

Total monthly income of $1400 after debt service.Since I can't pay cash and have to finance, the 6 properties by themselves aren't that great of a deal.

If you buy the properties correctly, rentals tend to be debt neutral, or adding to your income or very close to it, when looking at them from a Fannie Mae loan prospective.

If I'm funding other deals I may run out of money to fund thier deals.And I charge 13% plus a point on debt financing.

It's a generous amount of debt on them, but it's certainly possible.  

I sold my place to pay off debt.