i don't know anything about the program you're asking about, so i'll reserve judgment on it, but that's the reality of the market.a live in flip or house hack would be lower risk. 

Either way I've loss close to $50k already in holding cost, fees, and withdrawal from HELOC for downpayment.The problem is I could list for $50k lower and still not get offers in its current condition.

And by the way, these transactional costs disproportionately impact lower priced assets. 

While  rents can be on the lower side in some areas, the key is to find properties where you can add enough value through rehab to make the numbers work.

Being able to help someone who was going to walk away with nothing, and there was also lower cap ex.

While they tend to offer lower returns than stocks or real estate, they provide stability and consistent income.Another potential avenue is health savings accounts (HSAs), which offer a triple tax benefit—contributions are tax-deductible, earnings grow tax-free, and withdrawals are tax-free if used for qualified medical expenses.

The rents are on the lower side, but I am also not looking to raise them significantly as the best thing about these properties IMO are the very long-term tenants.When I do the math, I'd have a lower monthly payment and pay less interest over time even at that premium price versus a lower price and lower rates in the next year or so, but I likely wouldn't be able to sell any of the properties at that value for quite a while.Is there anything I should be thinking about that I am not?

Other options include refinancing if you can get a lower rate or bite the bullet until April.  

We actually put one in our lower level and while this is fine in the summer , in the winter in the northeast this is adjacent to a bathroom and the bathroom is then freezing. 

The fact that you replace it with a LOWER quality product now shouldn't lessen your payout.