Now, I am questioning if it even makes sensse to develop anymore properties.Does anyone else have any thoughts on this?

Your operating agreement would have to specify exactly what you can do with those monies.  

You should have, or you should create an amortization table that shows the actual interest paid on the $650k mortgage for the first 6 months while you lived there.

Check on VRBO and Airbnb.

Yes, you can do a refinance to tap some more of the equity on the property.

Any issues it appears will be on the landlord.

I got the deed recorded today and I'm going try to get the numbers from the state and reach out to the developer tomorrow and see what we can work out.

Now this depends on how much you want to raise, if its $1M yeah that can be done, if you go above $5M you are gonna need to spend money and I would assume someone starting out 10% of that amount to get there.

Has anyone here considered investing in real estate in Reading, PA? If so, I would appreciate hearing your thoughts and experiences regarding the local market, investment opportunities, and overall outlook for the area

My answer is always a mix of: You’re overthinking it and work smarter, not harder.A lot of investors are sold on the idea that STRs are a passive income source—which, to an extent, they can be.