Can you talk a little more about the financing, $4630 cash invested, how did you finance the balance of the purchase price? 

I finance these assets all the time, and I always have to explain to my newer (and experienced investors actually) that leverage in the small balance multifamily game is capped at 75% for a vast majority of the players, in a healthy market. 

In contrast the 2020 recession is an outcome of a pandemic which is causing economic havoc but homeowners and lenders all seem to be in much better standing now.So what drives this thinking that home prices are going to crash the same way they did in 2008?

IF covid had been worse than projected from a health and economic standpoint (100-200k deaths), this might have been something you'd see both sides shake hands on.

You sell the property, pay back the remaining loan balance, and pocket the (hopefully) profit, @Marc Cervantes.

Is the tax and penalty that will be due based on the ORIGINAL amount of the loan, or only the OUTSTANDING balance of the loan at the time I leave?

Different economics for them and things like urgent 1031 exchanges and realized that its an area that I don’t want to compete inOn the institutional side I presume you are referring to the money guys ?  

I am trying to find the right balance between something we want to live in and being a smart buy and hold investment. 

If we assume I bought the property at $40,000 all cash for purchase price and repairs, then why would I refinance and put a liability in the balance sheet?

In that point that is why I'm called here today to further my knowledge in the economic downturn we see before our eyes today.