That sucks.In general, I would think converting shares to a promissory note would not be a taxable event, but if the note never gets paid back, the note default would certainly be a taxable loss.On the other hand, you have probably taken depreciation.  

Hello BiggerPockets community!

Share your thoughts and let's learn from each other!

The next night, while at the property to let the tenants know I was the new owner, I noticed he was in the community laundry and with his phone plugged, a bottle of piss on the floor, and looked like he was going to sleep in there.

Hello BiggerPockets community!

Thank you for sharing first hand accounts!

I want to be of value and gain value from this community, I am here mainly from my desire to realistically create a passive income over the next decade or so.

If they say no, then ask them what options they recommend since they are the ones limiting your progress to improve the community.  

I would appreciate if you can let me know your thoughts and share your experience.

Assuming the property is equally owned 4 ways (25% each) you could have the property appraised for confirmation of value: $1.8M/4 = $450k/share x 3 = $1.35M could be obtained as a cash out refinance, potentially utilizing a healthy portion of the STR or projected STR income to qualify.