We have continued to do this for the past 1.5 years, and will be moving out soon and buying our next property, rinse and repeat.

He then moved in unannounced back in November or December of 2023 and has not signed a lease. 

Hey mate,Sorry to hear about your troubles but it's not too uncommon.I've been in the turnkey biz for 10+ years now and have often been called the "bad guy" as we only sell to investors looking to purchase with cash.Many believe that because we only accept cash buyers, that we inflate the properties price which definitely isn't accurate.Quite on the contrary when looking back I feel that we under sold them lolWe can justify every one of our property prices with a CMA independent of our in-house sales.Whoever believes that financing a turnkey property makes it safe is wrong.Most turnkey providers or affiliates push the financing model (Even in today's high interest environment) to make more sales.They have "in-house" lenders or community banks that they establish relationships with and promise large volumes in loans.This in return get's rewarded with various favors and many are easily able to manipulate appraisals.Having flipped over a thousand properties, I know how easily an appraisal can be manipulated so for anything reading, "NO", financing a turnkey property doesn't necessarily make you purchase it for fair market value.To answer your question:When S#%@ hit's the fan like it did for you with this deal, I personally would always look to cut my losses and move on smarter and more experienced.Granted, over the years I have witnessed many investors buy 1-2 properties from my company and expect miracles only to get disappointed. 

Currently, I am planning to move and also rent the main house.

We wouldn’t need to sell anything and there can be months of overlap between our lease ending and moving into a new primary, logistics are flexible.

I dont think you have enough equity to refi and consolidate the two. combining them puts you at over 96% LTV. cash-out will likely max you at 75% LTV of the $450k, so raising your rate on the bulk of the debt probably is not the move if you still have to bring in $100k to do so. is your 2nd going to balloon soon?

I really like the western suburbs like Cicero &  Berwyn.So are planning to moving into the property since you are using an FHA loan?

When it comes to Charlotte, they weren't accepting my offers, so I just kept moving on.  

(I bought 5 as primaries and moved a year later to lower downpayment requirements.)

Yes people buy them and then move away and rent it out but their cash flow is flat, negative or barely positive because again, they're not rentals.Plus HOA hit you with fees for renting out your unit, annual paperwork fees...they're a headache.