I could care less what happens to the prior homeowner or if they go after him, as far as I am concerned.  

If you are not going to leave there at all, and you can't do Bill 23 or have any value-add to get to positive cash flow, then NO, don't do it. 

And we will leave all non-IRS implications out of this, of course.Example 1.

I'd consider doing some kind of cash out refi on the property at a number you're both comfortable pulling out, while still leaving $ for reserves to maintain the STR you currently have.

The property owner did not leave the property as required at closing.

That means if a tenant leaves once a year I have two weeks to get someone in before I go in the red.

Knowing how fast or slow things are turning would not cause me to change how I manage my business.I'm more concerned about current market rents  All else equal, I know that by lowering my rents $50 or $100, I can lease up my units almost instantly. 

I'm not looking to leave my W2 tomorrow. 

Many other projects have reduced or suspended planned CF distributions and I've also had a few capital calls in which I did participate since the business case still made sense (the MF in Florida had a capital call to finish construction and get through stabilization and it still returned the 32% IRR).I expect almost all of the deals to be OK, just later exits than originally projected.I am very concerned about one project and have already written it off in my head.  

I think the big concern here is a national event that affects us all.