I am considering going through the quiet title process but it seems scary if you lose the lawsuit so not sure if it's just better to sell using the QC deed. 

Ideally this happens without any seasoning/payment history period, since I am reselling the house and lose title upon sale.

I don't mind lose a few hundred dollars a month.

There are no other title search services specifically setup to work with investors and provide the type of report you need to bid at the county auctions without losing your shirt.  

I also think it would be acceptable to ask when their award review is to be conducted,  in case they lose the benefit during your lease.

So if we lose power, the house doesn't drop into freezing temps for at least 2 days from a 60 degree set point.If you see a bunch of outages each year, then looking at a propane generator install would be a good idea.

If they don't like it, I would put it up for rent again, or you are going to lose money. 

You're cementing your loses if you stay. 

It is not cash flowing and in fact I will be losing ~3k/month in year 1.

In most municipalities approvals have a few year shelf life and in the event new regulations or new zoning bills are passed you could lose the benefit of the in place zoning/development procedures.