However, having no money at all and having no debt or assets,IMO, s*cks.

Debtor always wants a way to get paid :)

He can stay in the property or sell the property for 95% of the appraised value to pay off the debt or they can sign the property over to the bank.

After 7.5 years I have the option of withdrawing my Roth tax free and applying it towards the debt, or not. 

Thanks for the input dcg123, I really appreciate the helpI have talked with our lender and he says that he can get us 100% financing with 0 money down, pending any ridiculous debt or horrible credit, which we both have neither.

A properly maintained LLC should provide several benefits if a partnership is involved, including protection from debt or liabilities of the partner.

In my mind, your cap rate should always be higher than the cost of the debt, or you are getting debt-like returns for equity-like risk.

That leaves $275K for equity return and developer fees.You don't mention if you're capital is debt or equity, and if equity, if it's your equity or equity partners.

I can stay with my parents for as long as I need to and use that cut in living expenses to pay down debt, or build savings or whatever, but I agree with you: you just never know what may happen, and not having enough savings now has me concerned, combined with the fact I will need to spend even more money to get it ready.The $500 i accounted for per month would be after debt service, but before expenses.  

So I guess the question is, do you ride out the debt or sell to stop the negative cash flow?