.#1 thing I see landlords get wrong is Schedule E box 2, "Fair Rental Days."

I’m curious how the community of fair landlords would handle this potential liability. 

Is this a fair assumption or am I being to optimistic?

My only online resource is HUD's Fair Market Rent.

Should I hold on to it while I have a tenant in there and wait for the hoa to someday fix the foundation problems and then sell or should I get rid of it now knowing that I won’t be able to sell it for a fair price right now given the foundation problems?

I understand you are back peddling because you made a mistake, but it is not fair to act like the tenant is being unreasonable. 

@Brandon Yuan its a fair question. 

I've done a fair amount of background reading on the topic, but am looking for a lawyer with experience structuring real estate equity/debt deals to help me draft operating agreements and promissory notes as well as provide some guidance on my Private Capital strategy.Thanks in advance for the recommendations!

If you think they're not aware of the comps (and why would they be since they probably haven't been looking with rent that low), you could provide them with some comps to show them what comparable properties are renting for and what a bargain they're still getting at $1950/mo. 

I think it's fair to both sides.