This gives you instant equity and the ability to refinance if you need to or sell without a loss (and potentially a profit).I am happy to discuss with you further if you wish. 

@Ting Lai If you were not informed of the error until after the loss, then your agent is most likely at fault.Tell the agent you want to file a claim with the agents Errors and Omissions insurance policy. 

Hi, I have several rentals that I've acquired over 2-3 years (many thanks to advice from BP). The past 2 months have been a maintenance nightmare, with most of my properties having repair issues, some major, and tanki...

Sorry OP, you don't get to come on here and say you fixed it up nice with that crap going on.But as we know, the landlord is actually keeping it because the tenant "broke" the lease and they are experiencing "losses"and "expenses" from re-leasing it.

Labor and material costs in the Bay Area are on average $200-$250 per SqFt for brand new construction, so that's where I'm at a loss - even for a rehab of 3k SqFt, it shouldn't be that cheap.

If by PIN you mean something else I am at a loss.

If he has been a poor business man that is his loss.

If your home has lost value, they claim they will suffer that loss with you and you owe them even less than your borrowed in the first place.

Also that does NOT factor in rent loss or much for repairs. 

I believe it tends to give me a slightly lower return, because the sponsor is going to be more careful, and if there is a severe downturn will prevent me from taking catastrophic losses.