Fewer doors to sell.I would compare loss of revenue to savings in loan.  

I believe it tends to give me a slightly lower return, because the sponsor is going to be more careful, and if there is a severe downturn will prevent me from taking catastrophic losses.

Every turnover will cost you money due to vacancy, Plus you run the risk of additional losses from unpaid rent, cleaning, and repairs.

Welcome to Bigger Pockets Derek!

Keep this in mind when going the VA route for management.2) If a deal breaks/is no longer profitable because of Property Management Expenses, it might be best to find another deal with bigger margins.

Flipping can be feasible in one area for years and be a total bust the next year when every project comes in at a loss.

Motivation is an emotional response to a circumstance, not the circumstance itself.Someone in foreclosure, job loss, tax liens, are all circumstances.

This all comes down to how you're structured, how the flip cost were accounted for, if there is a partner (you mentioned "we").If it is an S Corporation and you "distribute" or "sell" the property to yourself, if there is any loss on value, which probably there isn't, know it most likely won't be deductible if it's a related party transaction.  

Thoughts on (1) biting the bullet and starting the foreclosure process versus (2) waiting it out and trying to sell the property (at a loss)?

@Cameron ScheuerWelcome to Bigger Pockets.