We are positioning the property to refinance so that we can recover most/all of our capital.

Once you are out of the bad deal, you can take the cash you do get out of it, and invest in a property that will make money...meaning, you will recover the temporary losses you have now, and start making a profit again.Staying with a bad hand, and continuously "betting on it", will get you out of the game fast. 

So, given that there was a crash 10 years ago (and some people forecast another big one soon) and there are plenty of investors that do ultimately fail in healthy economic times, what does that look like, and how do you recover?

Expect the attorney / agency to take 30%-50% of the recovered amount.

Think the government is hoping the investors will be a net positive to the economy and help with the recover... time will tell if that works or not.

I hope your husband recovered ok.

I have not recovered my money yet.

If you flipped these properties, can you re-invest (in the ways you stated), and not only recover your current cash flow, but increase it?

The real question is how to recover the lost rent during eviction. 

You will be able to payoff any existing loan (Conventional, HML, HELOC) and recover all or most of your cash invested.Evaluating a BRRRR deal is a 2 step process.