Build an SMB on top of your real estate (the reverse of #2)Short-term rentals and high owner-participation real estate businesses can have great returns.Obviously not for you if you just want passive RE.We are in the deep end here, where each case should be judged on its own facts and merits by your CPA.You should hire a professional to review your particular situation before you make an investment.

The property has been in excellent condition since it was built two years ago, and I’ve lived there myself without experiencing any similar issues.The lease is a standard Texas lease, and I’m seeking advice on how to approach this situation fairly.

I think it depends on your personal situation and your goals.

I just bought all the drywall, cement board, and a 3/4 full thing of red guard water proofing that I need for my entire bathroom remodel for no joke $110, that would have cost me $400+ at the store but someone else who already finished their bathroom just had a ton left over.

What might BP Nation be able to suggest in this situation.

It's hard to say without knowing more about your financial situation (not that you should post that on a public forum).

I'm sure I'm not the first person to be in this situation, what have others done that worked? 

I don't want to waste your money on inspection, option money, and appraisal money, just to find out the house doesn't qualify for FHA, so I do my best to keep you out of those situations. 

I hope now that we exposed them, people, who are now in a similar situation will be able to identify this scam and not lose their money and credit over this.

If you can hold on till first part of January the showings and everything else should pickup.This would be my action items: 1. hire a new agent that can sell the place, and get you numbers are rent and selling and sell the place. 2. be honest on the numbers you can get on an ARV so that you can sell it 3. start to get the conversation started with a couple lenders on what these numbers on refi would look like for you and this property 4. my suggestion would be to refi/rent before selling at a loss because if numbers work you can hold for a couple years then sell, but this is dependent on your cash position and liquidity of your situation.