If the numbers still work, you’ll be in a solid position to proceed.

You may end up needing to go through the whole foreclosure process which can take a lot of time and cost a lot of money, and you may end up getting the property back in much worse condition than when you sold it, potentially with a squatter in it and months of lost rent, and in a worst case scenario you will be in a much worse position than if you had just sold it outright. 

If they don't have a positive test, they won't have anything to back up the photos if it tests negative now.

It also positions you to work more effectively with lenders and partners who want to see a professional financial setup.How are others here organizing their finances?

In other words, we are going with something that won't cash flow positive and we're okay with it.There are definitely cabins that will cash flow positive, especially if you get something smaller that is likely under $300K.

I would be careful about doing something in an effort to "make positive cash flow".Section 8 has its pros but there are an equal number of drawbacks.

I may have more strict requirements for my operations today but just means I need to look around more for a market that fits my current position. 

Being dog friendly has definitely been a positive for me.

On the positive, holding costs to get you to february should be minimal.  

Many investors who are in a similar position in my market (another HCOL/tenant friendly area) choose 1 of 3 options.1.