This is a business.

If it is someone you know you can give them a straight return as if its a loan - can provide a lower interest rate to provide upside - it really depends on the lender and what are they concerned with and what is their risk profile. 

When loans were called, was it due to specific triggers like delinquencies, insurance lapses, or low-interest rate portfolio loans held by smaller banks?

At a 7% annual return, this could grow to $908K after 10 years, providing immediate liquidity and diversification.Alternatively, holding the property could yield $825K net equity after taxes in 10 years, assuming a $900K sale, with the potential to defer taxes via a 1031 exchange if reinvested into another property.

This kills me.

Interesting question if nothing else. 

Assuming property taxes + insurance added don't go above $1,100 total, you could maybe make this work. 

You're right to think critically about this.

I'm new to real estate and have recently become interested in wholesaling as a way to get started.

We successfully did an Airbnb sub-let this summer.