Our goal being to try and preserve some capital and potentially gain some equity / appreciation. 

Using a second mortgage or a Home Equity Line of Credit (HELOC) on your single-family home can provide the needed funds for the down payment while preserving your liquid assets.

We don't hide that by continuing distributions--so we cut those off early to preserve cash reserves. 

At this point I'm ok with preserving my assets and not losing anymore money and owning a few quaiity properties not acquiring more doors.

But they become defensive over their narrative to preserve their image which in turn helps them scam the unsuspecting.Like Joseph and Potipher's wife from the Bible, Run for your life!!

This preserves optionality to choose her preferred market (CA or other) after seeing if this style of investing suits her.

Preservation of capital.

You can continue making the annual payments and preserve your interest.

Or rent for less long term.IF I can make this Lake Front property a successful 30 day furnished rental, it will allow help pay for my parents care in assisted living, and reduce the draw down on their savings (and preserve my inheritance). 

Its possible that there is just some miscommunication with the lender and with the property preservation company they are using where they keep securing the property.