Also, with NPNs you run the risk of losses, whereas performing notes do not have that risk.

I heard in TX a lender cannot touch your homestead property to recoup losses, not sure if thats true, but what about in FL? 

I refinanced the property which dropped our losses down to $165 a month.  

Indemnification As consideration of granting easements and the benefits each of the parties acknowledge as received, the parties agree to hold harmless and indemnify, each to the other, for any loss, cost, damage, expense or judgment, arising from or out of, either party's failure to maintain the roadway subject of this agreement as required or any refusal to act or in keeping with any covenants herein or under any easements granted.

One scenario creates a loss (if sold), the other scenario is still a net gain but maybe the deal changes from home run to base hit.

had a blast, despite the loss..great game.

I wouldn't say the cash flow numbers are too good to be true, however, the one thing I noticed (if you're using the "Calculate CashFlow" feature on the website) is that you need to make sure the property management 10% box is checked (it's not by default) and add in maintenance/repairs, cap-ex, and vacancy loss. 

The Schedule K-1 reports each members share of the business income/loss that is reported on the member's personal tax return.  

It's been sitting for 8 months, a loss of over $8,000 and you're worried about $100 or 200 a month?  

Generally, you cannot convert passive income/loss into non-passive (ordinary) income/loss.