Losing $1,300 per month at a minimum doesn't sound amazing, but it completely depends on your financial situation. 

Have you ever heard of a Landlord being sued by a Tenant and losing property?

In addition, real estate is already tax advantaged, so you’re losing the tax advantages of owning real estate.Personally, I think real estate notes are better suited for self directed IRAs personally because you can get decent returns and notes not held in IRA is not tax advantaged. 

. - If you rent it two more years you lose the homeowner capital gains exemption. 

A couple years later, repairs, vacancy and turnover costs and you've actually lost money every month and you've decided to sell and buy in a more desirable area, but the property hasn't appreaciated, you have to fix it up to sell and incur transactional costs and you lose even more money. 

I'd rather pay more for quality properties in desirable areas than lose money every month on a deal that looked good on a spreadsheet.

We have tenants that we have repeatedly put up 7-day curables but we do not want to lose them as a tenant.As for not paying, follow your systems for non-payment just like rent.

If your partner is a contractor and wants to keep busy, that could be a different story, but I at least consider looking at long term ownership plans and flipping as very different businesses and a lot to learn on both, so not sure I'd risk losing money and time dealing with flips. 

As is, it looks like the duplex would lose about 10k a year while the fourplex profit about 1k per year...that said Jersey City heights (duplex) is not rent controlled and would appreciate more than downtown Union City.

You are going to have to lose a little more money no matter how this situation turns out.