Of course the bank says "no problem", I start the process etc, then after credit pull and everything state "thing's have changed and you cannot own more than 3 investment properties" so now I'm at a standstill and they want to push me to commercial side, which in this case is requiring them to take my first and have to refi the balance and lose my rate and then tap a HELOC afterwards at commercial terms.

But a year or two of rent is the least I would expect to lose after they got free tenant lawyers and met you in court.

We don’t want to lose money in the sale and we are being reasonable in the price we have listed it considering what we have put into it.

If the deal collapses and I would lose everything, I'm out.

No mortgage paid= they lose their home.

Know that as a landlord there are years where you lose money.

In the event you miss calculated your equity potential, you should be fully ready and able to settle the transaction or be prepared to lose your initial deposit. 

If it will cost you considerably more in the future and loss of appreciation, lose of tax writeoffs and lose of cash flow in the meanwhile, than the amount of debt you are paying off, how does that put you ahead? 

It’s my understanding it’s very hard to meet reps status working a w2Also I believe once you get above $150k basically you lose any benefits of reps status

Count your blessings because I've seen new owners lose over $10,000 with an inherited tenant.