Texas law provides significant protections for homestead properties against most creditors, such as credit card lenders or lawsuit judgments, such that your falling behind on payments will not cause you to lose your home.

You could alternatively hold the property for as long as is necessary to break even but when you consider the time value of money and how money today has a greater value than money in the future "breaking even" in a few years may actually be losing money because you've lost out on opportunities to do things with that money in the meantime as well as you've lost money to inflation. 

The lender lent the $200k on the assumption that you had enough money in the house to make sure that you don’t want to lose it and will therefore pay the lender back.

I lose control of the investment and these are long term, illiquid investments - but they put significant and regular cash in my bank account and a much higher rate than when I was trying to be actively passive. 

If it's middle of nowhere stand to lose a ton of money long term.Sometimes buyers still buy the crap because it's only credit tenant in lower price range buying all cash for 1 million and they think I will live off the money and the estate with the kids can have the worthless property later.

Stupid loses more than smart wins. 

If you quit now, you will lose all your progress.

Please no comments on how I'm losing money and I should get better cleaners.

As such, is the sponsor going to sell a deal into the free market and lose the added efficiencies on their PM side, or do they hold longer (potentially at the detriment of the LPs) to continue to help build scale?  

Unless you own the land you built on, have an easement stating your right to use & access the ADU, or a contract stating such, then you most likely could lose your $150-$175k investment plus you'd have to find another place to stay.