We'd likely lose our down payment of around $15K but break even in not owing any money.

Hard money loan How did you add value to the deal?

Using the money from selling that home to continue buying ETF’s (paying dividends) and continue offering private money loans to home flippers I partner with. 

This property is probably a loser on day one, especially if you set aside money for maintenance and capex.

My underwriting had me around break-even... not a killer deal by any means but between the low money down, rent savings,  principle paydown, and most importantly the experience...

The 'what you get' for the money factor is highly applicable from Brookings to Astoria and licensable STR coastal vacation rentals are still regularly attainable at workable terms, Luxury and oceanfront and lakefront properties tend to perform above the 10% of valuation in gross annual income for prime coastal STR's and as an example I've seen a $2.1 Million Oceanfront home produce $300k in gross annual income.

Luckily I was able to convert a portion of the front lawn into an additional parking for not a lot of money, but I had initially failed to account for this inconvenience - lesson learned.  

I've had the same question and have had countless house hackers describe to me why house hacking is a successful strategy even if you don't make money while you're occupying one of the units. 

Now my lender are debating if I have to rebuild the structure completely with the insurance money.

Fresh out of college, we moved to Dallas, TX to take on entry level jobs making very minimal amounts of money.