@Jonathan C.
There are a few things that make me wonder when I read your post:
1. What was the goal for you when you bought the property and how did that goal align with what the turnkey provider told you about it?
If I look at my investments in B- and C areas I know that the longer I hold them, the better the numbers typically get. Your case with such a steep loss is pretty extreme in such a short amount of time, but still, I wonder if you bought this property for long-term hold or not?
2. Leveraged properties require patience even if your tenants pay on time and maintenance is limited. If you want bigger returns faster, you would want to buy better quality properties in quickly appreciating markets. So you had a plan, I assume. Was it a good plan?
3. You said you bought from the turnkey provider. They do not take any responsibility for anything and just dump all the costs on you? How did you decide that this was a good provider.? I can't imagine that @Engelo Rumora or any of my providers would do that. It's a matter of the systems they have in place to limit the risk of things like you describe form happening.. Do they have those?
4. I always recommend for my clients (and myself) to run the investment portfolio like a business and suggest to form an LLC (running as S-Corp), even with only 1 property. In your case you have a lot of losses in the time you own the property but these losses transfer through to your personal tax return, so you can recover some of it and not have to count the full nominal amount. Did you consider that?
In summary, if your goals are still similar to what they were when you bought, the location has potential, better vetting of tenants will avoid evictions, etc. it would make sense to keep the property and see if it can live up to the potential you expected when you bought it.
If you think you had false expectations or don't see a probability of recovery, I would also do the renovation and then sell. You can file losses again and the cost of the renovation.
