That translated to a loss of roughly 85,000 jobs -- and home prices went down with them.

Lets say I get 3 out of the 5 to move in at 1100$ thats 3,300 a month in rent leaving me at a loss of $1,100 a month.

So I would live there for a year and could put in a little sweat equity to renovate a bit and aim to bump the value to around $230K appraised ( feasible based on location and market comps).

.), just be careful, the IRS expects you to make a profit in 3 out of any 5 years and they are quick to label those that do not meet this requirement as a "hobby" and then none of your losses are deductible.

I filed for bankruptcy (job loss) before and have been  scared of taking on so much debt even with the leverage ever since.

As a result we our running at a net loss for 2016 from the rehab costs. 

For each partnership LLC, a schedule K-1 will provide the net LLC income (loss) that passes through to your personal income tax return.  

If that's feasible, I imagine that might look similar to having a resident property manager (in the case of a multi-family property).

You could cashflow for 4 years, but if you sell afterward and all comps in your same building haven't sold above 40k, you gain cashflow for those years minus the 22k loss you would take to sell the unit.

If her loan is an FHA loan they will for sure not take a loss.