I'm just a bit shocked and disappointed they could just close down my account and force this chaos on me to find another provider ASAP or face potential tax consequences and loss of my qualified status. 

How do 5-7 people share food space, kitchenware, cooking time, etc?

It will be a lot of hard work for little to no pay (or loss) until you hit a point that will be long and hard. 

Accepting the s8 with later move-in then other applicants would result in the loss of rental income.  

If you allow this to continue, they will only get worse over time, and your losses will increase.I suggest you hire an attorney.

If I had known the numbers they quoted me were total garbage, I could have sold my houses much earlier and saved about $80K in losses.

It seems I am lossing money.:( Is that right? 

They have been incredibly transparent but they are currently deciding on a capital call or selling the property at a major loss (70-80%).

In southern Florida I fund and profit / loss is 50/50.

So, some food for thought.Trusts seem to be the preferred method of liability and asset protection among the wealthy.