The capital loss would be calculated as the difference between your original investment amount and the amount you received back (in this case, 10% of your principal).

If you do a cash out and can't find a deal right away, you're blowing through the interest on that amount that you cashed out.

She then contacted all RV parks owners that had their parks listed for 9 months or more and had not sold, offering to purchase their parks for a certain amount and disclosing her intent to “flip” the contract.

After about 10 years I have accumulated a fair amount of small multifamily properties. 

Buy the same amount(in regards to downpayment allocations) in debt notes.

Most min loans amounts are going to be 50-100k, so an issue there.

Another thing to add is the regulations, HOAs and Cities are imposing a lot of regulation on short-term rentals or rent by a room, I have seen some HOAs regulate the amount of people authorized to rent the property too.It requires to do a lot of due dilligence to begin with mainly in such big house. 

Most will not do 100% loan-to-value so plan on something less than that for the loan amount.2.

While I did spend about $15K on renovations, that amount doesn't need to be factored in for this discussion.

If the leases end up in the realm of where we believe they will the value of the building will go up a good amount and we will have close to 1 million in equity.