Than maybe with adjusting the vocabulary to REALIZED performance and UNREALIZED performance, we can start correcting understandings. 

These LOCs are typically interest only and adjustable rate, which of course is planned for, again with the equity and the cash flow of the investment, it shouldnt be a problem to at the very least break even, even in the worst of scenarios.

Your town may have just undergone a comprehensive reevaluation which adjusts the property values of the whole town.

Excluding the periods of “tulip bulb” irrational exuberance, a property must produce enough of a risk adjusted return to satisfy both the ROI demands of the “limited partners”, and the income/time requirements of the sponsor.  

Time allows for adjustments, scaling, and reinvestment in ways that short-term projects simply can’t achieve. 

Now, let's adjust structure type as that alone will get some really good focus right.

However, if you bought it and managed it as a market rate apartment, your experience would be very different.My point is, I can control how fast a unit turns simply by adjusting my asking rents.  

The moisture issue and structural issue need to be addressed and you can do so before the insurance adjuster comes out.

I have financed a number of STR properties and they will usually be appraised as a pure real estate as vacant value and a cash flow adjusted commercial value, sometime separated as going concern and real property.  

I agree that rates have naturally adjusted with the rise in the Fed rate, and it seems like the 10-14% range may become the new normal for a while.I’m curious—what’s your outlook on how this rate range will impact new investors entering the market?