Do not do anything that does not produce income.

And one point the OP made about their credit.. only gurus talk about that.. by the time someone is days away from foreclosure their credit is trashed  having it actually go to sale will hurt a tiny bit .. but your not saving anything. 

There are times when we see deals on the table that won't produce any cashflow or not enough cashflow to meet our target hurdle rate but the tax benefits or appreciation potential may make the deal attractive. 

I am sure it will all work out for you in the long run.. we sold ours and made a tiny profit on each but its better than a loss right ?

DC is also very tiny. 10 square miles.

I did buy a website which was expensive and produced nothing, still trying to decide what to do with that sunk cost.

A $500k property should produce gross annual income of +/- $50K but can generate as much as $65-70k with the right location and amenities like a hot tub.

It will include a compact bathroom, a tiny kitchen area, and a heater—just the essentials to make it comfortable for someone to stay in.

The tiny 2/1 needs rehab and wouldn't bring $10k in today's market in its current condition.

Plus the added requirements around getting drawings and general contractor for even adding a tiny closet.