Will you continue to add units2.

Then continue moving from one unit to the others until you renovate them all.

People can't afford to buy so they continue renting (and stay longer!).

You also have to be super detail-oriented, focused on continuous improvement regarding the property and guest experience, very in-touch with what it's like to be a guest at the property (and a cleaner of it as well), and focused on technological tools and opportunities. 

They may easily discover the clubs, investors/end buyers themselves and just sell their property to a highest bidder without sharing proceeds with a wholesaler.

One of the ladies, Amanda couldn't keep her eyes open during our meet and greet, she continued to nod off and she is one of their tenured Property Managers.

Quote from @John Busch: Truly appreciate the multiple responses and look forward to continuing our communication as we live in Southern CA and do not have many contacts in that part of the county. 

At this point, instead of continuing to pay the interest loan payments on properties that we will never be able to financially finish since the rehab loans will not cover the actual cost of the rehab, I wanted to know the ramifications of returning the properties to the loan servicer, deed in lieu.

I can only speak to myself personally but I've continued to invest, knowing properties may not cash flow much but I've invested in value-add so focusing on appreciation.

Interest rates atm seem quite high so will ride this out a bit longer (and ratios will continue to improve over time.)