If you had a great HOA, I would tell you to consider holding it if you can carry the loss and you expect some more appreciation in the area.

We expect to get about $150k out of the property when we sell.Do we take the cap gains hit, pay off the mortgage on the second rental ($80k) to increase cash flow on that property and do something else with the remainder (pay down our mortgage, invest, etc.)orDo we 1031 exchange into something else? 

A guest might say "this is broken" - if I was 15 minutes away, I would still call the same handy man.

Because they didn't approach us until they've broken ground that I am unsure of the reasons why... but my sister and I will be looking at building plans, proposals, and any amendments to the original plans to see what's going on and hopefully resolve this soon.

Lastly, I expect my mother will need significant care in the future and I don't want her financially destroyed.

I've been studying different markets, both local and within a couple hundred miles, to learn which markets are expected to warm up so that equity would build faster.I have rented out my primary before and, yes, it does work well, about $400/month cash-flow.

What happens/what does it look like if you can't pay a private or hard money lender" - Well it isn't like the loan sharks of the mafia era so you can expect your kneecaps to remain in tact.

Roof is at life expectancy.

(Toilets are a big one)- Deteriorating paint (lead is extremely common in cities like Rochester)- Breakers, furnace filter(s), water heater(s)- Damaged/broken stepsI think it is a little ridiculous to go around and nitpick with a checklist, but we do check for issues that would cost us money down the road, or are safety issues for our tenants (and properties).

Pending sales in DFW dropped like a rock vs. prior year, and since sales lag pending contracts by a month or two I would expect that it will start to affect the sales numbers shortly.