Sounds like you got a property with minimal out of pocket.You could try posting the room on FB or Craigslist.

I ran the numbers on the deal knowing that I would break even on cash flow in the first year with minimal rent increases but significant cash flow in year 6 when the 401k loan is paid off.

If it would help to get a more detailed estimate feel free to reach out.Documentation is rather limited, just ID, bank statement, LLC documents to start.Sometimes there are interest-only options at 30 and 40 years, generally the difference in payment fully amortized over I/O is minimal so it may not be worth it.

We completed our taxes and got the K-1s out at the beginning of March before the lockdowns started.As far as bad news, best practice is to communicate it along with what you're going to do to minimize or mitigate the impact as much as possible.

I do understand that market value becomes what has been paid for a deal but with minimal work and renovations my deals almost always significantly increase in value in the first 6 months.

Strategic Purchase: Acquired a discounted double lot below market value with a $17k impact fee credit.Custom Design: Built a 6-bed, 5-bath home tailored for co-living or multi-gen use, maximizing tenant appeal.Efficient Management: Managed construction, and self-managed operations to minimize costs.Premium Marketing: Furnished the property and used multiple platforms to attract quality tenants quickly, achieving full occupancy.What was the outcome?

I am not telling you to do one thing or another  Also, i believe that FHA will not allow renovations to a home unless it’s already livable with minimal to no repairs visually needed but go check.

On the positive, holding costs to get you to february should be minimal.  

What steps would you recommend to minimize damages and resolve this issue efficiently?

I set up the entities using diff companies and paid about $1000 for all three (I got minimal boilerplate operating agreements).