This was taking on suicidal risk to begin with, and it's just going to get worse.

At the risk of sounding too dramatic (but I know us on BP can get extreme to reach our goals), I am going to NOT get another residence.

It’s better to pause and confirm than risk relaying false information.Remember, deals are built on relationships, and relationships are built on trust.

Just be aware that (1) you can easily do whatever it is Tardus is selling much cheaper elsewhere (2) Tardus special investments for members only are mundane investments available at the same terms to anyone with a computer and internet connection and (3) the strategy of borrowing from a HELOC to juice returns carries with it a much greater risk than is apparently disclosed. 

You could also try to find a seller who wants to do seller financing and take a risk on you, which would be challenging to find.

There are those on YouTube who are very close to violating the law, if not dancing all over the line.In my opinion, the real problems originate when the buyer isn't clearly disclosing the risks to the seller, or violates the Consumer Protection ACT, or doesn't have enough capital to make the payments, or does equity stripping, (some equity stripping is legal, some is not)  12 U.S. 

Focus on running a clean operation rather than perfect technical compliance.Pro Tip: Your biggest risk isn't the IRS - it's partners who might complain to the IRS.

Incurring losses every year will mean that the losses will be suspended and carried forward and will offset future passive income.

All you can do then is just assume it is abandoned, take the risk, and take DIY possession like your Dad did. 

Rates and expectations vary depending on the relationship and the investor's comfort with risk.