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. 

The idea that his bad engineering and planning would allow him to pump water onto your property is kind of stupid.

I spoke with a friend who is a structural engineer and he said it looks like it could be pretty bad, so he suggested having someone take a look in person. 

I've never had one but always assumed (I know, a bad word) it was free training to a certain point

I need to consider the good, the bad, and the ugly!

If I had a few successful cash-flowing deals, it seems more realistic that I might be able to weather a bad deal easier.

i think if investors BEFORE they bought properties that require  medium to heavy managment they should definetly sort out their style of management and sourcefrom what i reading is people are basically tired of bad tenants and other minor thing such as up keep.but if u did a bit of footwork and got yourself some good solid tenants that are trustworthy and would treat your property nice i dont see a problem.. having a residental rent collector and your good tenants and your own contracted mainence is pretty much it..good footwork is always valuable all the time ..people need rental homes just as much as people need owned homes

I'd chalk it off to bad luck and move in. 

I have spoken to a few lenders but I am having trouble differentiating from a good lender and bad one.

Good idea, bad idea?