What I'm looking for is a decision where despite the plaintiff's demand for the defendant to convey the real property, the court decided that a damage award would be sufficient.

That 2.5% could no longer be a negotiation token that you used to have to make your offer stronger or put it in your pocket as a credit.I can argue that the pre-settlement was incentivized buyers to self represent because the industry had commissions available to the buy side. 

If the borrower intends to use the same asset to satisfy financial reserve requirements, the lender must reduce the value of the asset (the account balance, in most cases) by the proceeds from the secured loan and any related fees to determine whether the borrower has sufficient reserves.

Passing the Self-sufficiency test on 3-4 unit properties with FHA financing is truly a nightmare. 

Once you've accumulated sufficient reserves for the property in this account, you can then use the excess cash balance to sweep over to your personal account as profit distributions.The key here is keeping the entities separate. 

What guarantee do you have they will carry sufficient hazard insurance?

I probably wouldn't keep the home with negative $550/month cashflow unless you have serious reserves and sufficient bulletproof (as in recession-proof) discretionary income.

Most houses cannot be bought at a price sufficient to cash flow.

With FHA loans, there is a self sufficiency test.

We've touched on this prior to the 'settlement' that today lenders essentially allow the real estate commissions to be rolled into the buyer's transaction by appraising for a price sufficient to cover the RE fees.