@Natalie Kolodij in that case, definitely not advisable...

But it definitely puts you ahead of the game.

You are definitely going to want to get a lawyer and as soon as possible.This will sound harsh.In your story, you have made a number of very poor decisions about how you purchased and managed this property. 

I agree that qualifying for my next property could definitely be an issue.

But this is definitely a CPA question because the IRS rules are based on your AGI and phase out if your AGI is over $100k.

Due to the current interest rates, you probably can't live for free, but you can definitely learn how to house hack in that first year, reduced your personal housing costs, learn the rent by room/co-living strategy on-site, and then probably break-even after move out, but most importantly, it is possible to make that work in 2025 with today's rates.It just takes being open-minded and willing to be flexible for the 1st year.  

The core principles in The Book on Rental Property Investing still hold up, but higher interest rates definitely change the game.

I'm definitely interested in your connection!

@Derick Jennings if you have not connected with @Dan Guenther yet, I would definitely recommend it!

HUD loans will take drastically longer (I've never used one personally), but there can be benefits to using these loans if you're a long-term owner.The interest rates in your Key Considerations seem very low for agency loans and they're definitely low for bridge loans.