Banks/Lenders use a theory that if an investor encounters a loss be it in income, death, divorce, major sickness, or any other set back they are more likely to let their 2nd lien positions go in default before a 1st lien.Reason why I say this is although you have a great rate on the first mortgage you need to let it go and do a "Cash out refinance".

Here is my situation:I've owned and lived in my house as my primary residence for 3 years.Up until the last year, I have rented out spare bedrooms (space within the living area).I got married about a year ago and my spouse has now been living in the house as her primary residence for 12 months.Question 1: IRS publication 523 states in the section under Business or Rental Use of Home, "If the space you used for business of rental purposes was within the living area of the home, then your usage doesn't affect your gain or loss calculations.

IMO it will be a loss.

That killed (along with the recovered market) my company's program, but probably saved billions in US tax dollars since people routinely overpay for housing product.

Many companies will do notes or bonds that are unsecured debt against company as they don’t want to pin it to every asset which is not uncommon - but when they take on additional debt that is secured and/or start to incur massive losses that’s when it gets hairy.

All great points.The plan is that the partner would not mark up costs, recovering his GC markup through profit share. 

Pick your poison carefully though or it can cause a loss on both sides.

If you've got losses or a favorable tax situation then take the commission by all means. 

Well it seems like you could just let them out of the lease, but then you have turnover costs, including time on market to find a new renter- meaning you're going to absorb loss is possibly because of this.

If there is a loss and you want to preserve those losses to offset income when you exit out the deal, probably file.