I suppose I should just cut my losses and find another PM. 

They have no incentive to sell the property at a loss, most cases the bad debt was from another bank that went under and is insured to the full loan amount.

Like starting any small business, it requires capital, as well as the fact that you will likely operate at a loss for sometime before turning a profit.  

Of course, if the property declines in value, that's a loss.  

It's not like selling things at a loss in my view.  

You don't want to be in the middle of a dispute where damages or loss occurred to tenant property and you have to be a twice removed middle man (dealing with Airbnb to settle the dispute and the tenant as well as the guest=no fun).It may be worth your while next time a unit turns over to try renting it as a STR (short term rental) for a bit and see how you like it.Best of luck!

I don't know if the GC made a profit or took a small loss but we got that out of the way in the beginning by having the other GCs bid the same job. 

Assuming you want a secondary market loan for your primary:If you have had the rental long enough to claim the income on your tax return, you can most likely use that income to help qualify (or loss, if that is the case)I would strongly consider a secondary market loan for a cash out refi of your rental.

It will ultimately be left to the courts's discretion but if you have a strong clause in the instruments you have a chance to be able to pursue those losses which incur by way of enforcing the instrument.  

If the property loss is less than the difference you are currently be paying in rent vs the "rent" on your house hack, then buying the property would be cashflow positive for you and your SO in your current situation.