I hope you will try to get your money back and am happy to give you some strategies to put pressure on them if you are actually prepared to get aggressive to try and recover your funds.Sorry again you went through this.I am in a similar situation to Frank, just with another investment with the GP, it would be great to have a quick chat and get your perspectives. 

Here’s my strategy and the issue:Current Strategy:Buy a property for $200k with cash.Refinance after 6 months to recover $150k, leaving $50k in the property.Use the recovered $150k to invest in another property, but I need to save up more money to repeat this process.Alternative with Hard Money:Use hard money to buy properties worth up to $800k.Refinance them later to recover my initial investment.For the hard money scenario, obviously I wont be buying them all at once, but rather buy a property worth 350 -> refi -> get HML -> repeat, until my money has ran out.However, hard money can’t be used for cash offers directly, as it’s typically a loan.

Since the property has increased in value due to your rehab efforts, you can often refinance for more than what you originally paid, recovering your initial investment.Repeat: After refinancing, you've effectively used none of your own money, but now have equity in a cash-flowing property.

So, any excess effort in dealing with it is likely wasted as it won't be recovered from the tenant.

Be prepared.Even if your personal home is only mildly impacted, but your community who relies on tourism has a BIG impact, understand that this will take months or years to recover from and some communities will not recover.

I/'m still trying to recover my money. 

Tourism Recovery and Short-Term Rental RegulationTourism Demand: If tourism in your area is recovering, there might be a shift in short-term rental demand, which can create competition for mid-term rentals.

Be able to recover and grow.  

But, of course, you must do due diligence to ensure the market will not recover in the short to medium term.What are the signs of a weak or stagnated market?

So while yes, 100%, over a long enough timeline real estate at median has always risen, specific neighborhoods have fallen from grace and generations later never recovered to par (inflation adjusted that is).