An election can be made to move the $5k and the associated interest over to Sch A so you won't "lose" the decision in that manner.But if you can't find a way to apply the capital in a feasible manner, don't make a hasty decision simply for a $225 write off.

I think I made the correct decision in letting them go

Then in reading through BP, that thought evolved into a decision to make this a business that can grow into something profitable for the long term and not just a vacation home that I rent out.

I dont just have a "lets-go, NOW" mentality, in fact, I probably am more "let-me-dwell-on-this-a-bit-and-by-bit-I-mean-a-month-or-two" before making decisions.  

So you've made the decision, the next step is taking action!!!  

Short of it is, if you take your 1 year as a short term situation and evaluate the property based more on long term occupancy (which will be a real money paying tenant) then you can make a more informed decision on the merits of the property.  

I would suggest your decision to join a REIA is similar to buying a new vehicle.

Combine that with some ability to extrapolate possibilities of future results based on decisions you think would be good and have many exit strategies.

That said, I've been keeping my eyes peeled for an "investor grade" home languishing on the market because it's being incorrectly marketed toward owner-occupant buyers.

Yet there are numerous other factors that may weigh into a decision of client choice.