If I lose the same 50k on a real estate deal the only thing I can really do is wait out the time it takes to recover. none of that to say don’t invest in real estate.

Another reason to only do it when you have nothing to lose if they sue you for breaking your lease. 

At this point, if we can sell for $150k, we will still be losing some money, but the monthly bleeding of the line of credit will end, and we can at least be free from this and put it behind us.    

Since you said the sales price is $180000 and loan around $165000 so Mom needs a down payment plus the costs.The seller may lose a portion of their entitlement, not knowing their situation, cannot speculate but the loan is small, so perhaps a percentage of the entitlement.The seller doesn't have to stay one year, seller can move and ask for exception, seller cannot rent the property in the first 12 months. 

I even heard of a landlord being sued and losing and having to back pay all the rent payments. 

Hi Mayuresh, personally not a huge fan of the Cleveland market because it's losing population year to year and companies aren't moving there.

Every investment is a risk that you could lose EVERYTHING.

Attention new investors: As I’ve immersed myself in the BiggerPockets forums, I’ve observed an extreme emphasis placed on asset protection by those entering the business but their approach and where they decide to allocate their time and resources is misplaced.

If the name of the game is "be the biggest idiot," it's ok to lose and let someone else "win."

It would really suck to lose money and also have to pay taxes.