To address this, request documentation, update the lease, address rent payment, consult an attorney, and maintain a positive tenant relationship by communicating clearly.

I’m excited to finally be in a position to take the plunge into real estate investing!

We're still seeing deals that hit the 1% rule, have positive cash flow, and lots of potential for appreciation.

This creates a negative initial position.

In a short sale with a partial claim, your first lien position with the FHA loan takes the loss so the claim can be paid in full.

Will there will be positive opportunities for investors to make more money in the real estate market ?

@Stuart Udis thanks for the feedback great read.

Thanks so much for the quick feedback, I appreciate it. :) 

@Nold R.In addition to the great post from Dave, possibly consider an option where the property is taken out of the LLC sooner rather than later and held as tenants-in-common prior to the sale, possibly setting you up in a position to take your share of the proceeds and individually purchase a replacement property via 1031 exchange. 

When I finally got feedback from the appraiser, it turns out they walked the property and decided it's not a fourplex, rather the "highest and best use" is a duplex and two townhouses.