The appreciation is probably worth more than the cash flow loss, which I am okay with at this point, but it does hurt to see it bleed.

I ask because it seems like you have two clear choices - Either finish the rehab and sell potentially at a loss, or hold the property while renting it out so you can hopefully benefit from gradual appreciation and using the rent to help make any principle paydowns on any loans you may have. 

I'm mainly trying to just figure out if the year 1-5 loss of around $38,000 is still worth it in the long run with the sale price covering that loss plus about $250,000.

Long term rental comps on average, when you pencil it out, will be at a loss in the $100-500 range in my experience.

Sellers who purchased homes during the market peak may find themselves in difficult positions, as they could potentially have to sell at a loss or contribute additional funds to close a deal.4.

from my perspective C can be 50 50 for out of stand landlord   as in 50% chance of a decent outcome over timeD class for out of state I think is 80 to 90% of folks that try this will lose money and end up exiting as a loss sometimes a huge loss

Is it a lost cause and I'm just supposed to fold and cut my losses??

My gross rental income looks pretty impressive and here I am working my W2 job, to say nothing of the losses incurred each month on my Class C Indy house. 

Disappointment and risk (I.e. financial loss) are linked if you try to do Real Estate solo (vs with us), which exactly why we started the program.

As far taking a $1K loss a month, maybe talk to different prop mgmt companies to see if you can get a better deal or if your property needs any upgrades that you can perform in order to ask for a better or higher rent, something to consider.