I recommend you find a way to give these animals away before you lose control and end up on a reality TV show.

I have found some information that might be helpful John.There are government backed programs like Fannie Mae Homestyle Renovation Loan and Freddie Mac Home Possible Renovation Loan, in addition to the FHA 203k loan. 

Plus there is my new program, "improved super calculating  amazing mortgage system" or iSCAMS (tm) because everyone knows that putting an "i" in front makes it 37.8% better, I am charging $100 for that program.    

And perhaps they realized that they couldn't staff permitting and enforcement for the program. 

And you'll have the best rate/points options with a primary residence.Option #2 is great, especially if you're willing to move into one of the units (because the down payment minimum is just 5% or 3.5% depending on program), but as you mentioned it's really tough here to find small multifamily here.

The program is not what we had hoped for.

.- After closing, you can do some of the work yourself to save money, but the program doesn't allow you to pay yourself.You will want to buy a Class B property, maybe Class C+, in an area that seems to be improving.

It is secured with  👇 Controlled Interest: We include our investors as a 51% controlling interest member on the borrower’s operating agreement.

The PM dropped the ball by not doing more to control the situation.To answer Jordan's original question:Do you think that is fair - to be forced to pay for your manager's mistake?

Everything else is fairly controllable, and even Capex is foreseeable.