I also am happy to give them a chance to explain so we can build trust. 

For $150k out of pocket this seemed like a home run yet sometimes we barely break even.  

There's a good chance the issue(s) you face has already been discussed and answered.Ask questions in the appropriate forum.

I had purposefully waited as long as I could in case it was blocked, but I figured chances were slim at this point. 

Always keep in mind the alternative, the bank has no duty to sell for less than what the open market will bare for the asset.

Also do not forget there is also an appeals process - we won a case that went to appeals and the appeals court took another 2 years - so it was 5 years in total.I am curious what others would think, but there is in my mind not a chance this would ever be resolved in the courts by July.

The point of the questions above is to emphasize that renting out by the room increases your chances for more problems.

So even with me living in the 2/1 it cash flows just barely (at least on paper) but it looks pretty good once I would move out.

So, after 30 minutes of going over the information of the case, the judge decided he should have a chance to defend himself, and I have to go to court again in 3 weeks. 

I generally see literature as such, and cannot tell if having a part time employee removes the chance of solo 401k or if the custodians just don't want to deal with it:"IRS rules prohibit contributions to a solo 401(k) if you have full-time employees, but you can use the plan to cover yourself and your spouse into retirement."