Eric,, I think why people go for the fund model is the idea that they are spreading their money into multiple notes being held by the company.. while in theory this is great but as you noted you don't really have any security compared to being the beneficiary of the debt instrument IE debt is in your name. 

If none, your losing money, on either the existing or potential.3. 

I also practice as a Realtor because I enjoy it and it is extra income.So as an investor, your options are to get your RE license and have access to a lot of tools and do the research yourself (therefore you're paying with time, energy and a little money) or you work with a great realtor/investor in the specific market you're looking into.

For example, my appliance store gives me a 10% discount, so I charge a 5% markup to my owners to make a little money and the owner still saves 5% from retail. 

Would it make more sense to move the money we make from selling to a different property that could potentially increase our cash flow? 

If I get the money in 2025, could I then use the other 90% as a capital loss on that year's taxes?  

Maybe I'm no longer a low risk bond investor, maybe I'm parking my money in $VOO instead, CRE REITs, or perhaps higher risk higher return bonds. 

You are bleeding money now, but each year it might actually get worse depending on the financials. 

I lost another $1000 in inspection fees but should get back $2000 earnest money deposit.

Also, after a year, the mortgage hasn't been paid down by much, especially if it's a 30 year mortgage.The only challenge you may run into is if you purchased it using a low or no money down mortgage option like FHA or VA lending.