@Tucker Cummings the never ending chicken or the egg question. 

The IRS seems to try to box it in so folks can’t as easily have their cake and eat it too.

Here's some more reading material for you:https://www.biggerpockets.com/member-blogs/10850/74478-a-little-known-secret-called-self-directed-irahttps://www.biggerpockets.com/member-blogs/10850/76519-dont-put-all-eggs-in-one-baskethttps://www.biggerpockets.com/member-blogs/10850/81273-how-to-pay-less-in-taxes

However, the 1st property detailed above had been professionally managed for many, many years, was eat-off-the-floor level spotless clean in the basement and had clearly been well cared for and maintained when we bought.

I would never put all my eggs in one basket.

Its like the real estate version of which came first the chicken or the egg.

Eat your losses and move forward, if rent should be $600, no one will pay $825 or $900 unless it's the best of the best, and it will cost you a lot of money to get it to that, and it will be tough to keep someone happy at 50% more than other rentals. 

- don't put all eggs in one basket.

I would feel different if I had to eat up part of that with taxes or penalties.

One month of vacancy will eat up two years of cash flow.I'm in a market where the average single-family sells for $260,000 and rents for $1400 - $1600.