Short sales are where the bank would realize a lesser loss settling than they would completing a foreclosure.

I had invested in out of state RE in the Midwest before. buy & holds in OH that we ran into several issues with, incompetent PMs and lot of repairs required leading to losses and instability.2.

Otherwise, weigh your options with estimated vacancy and remodeling time, but how you may be able to mitigate losses longer-term with the higher rents you'll presumably be able to collect with new tenants. 

Check out this youtuber video about owner-occupants in areas of Florida having to sell at a loss. https://youtu.be/wpKpwUhPRrA?

In our case, our lease specifies that if a tenant wants to break the lease early, they are required to pay three months’ rent as a penalty and forfeit their security deposit.This approach helps cover the costs of finding a new tenant and any potential loss of income while the property sits vacant.

Non-passive losses can offset non-passive income (like your W2).

I'd be pretty irritated over the loss of 6k, 4 months of stopped work and the corresponding holding costs.Do you invest in OH, or somewhere else?

I have suspended Passive Activity loss that would reduce the gain, but not eliminate the gain from tax POV.

This delays evictions and often results in significant financial losses for landlords.

Your loss is limited to the amount you invested.You can sell shares of publicly traded reits on the stock market during trading hours.