One family even told me they were having money problems after the birth of a child and the loss of a job. 

It wasn't an expensive class to begin with, so I figured it wasn't a huge loss if it sucked.

In fact, I still have a carry forward loss of somewhere around 100k on the books. 

You suddenly will realize that on papers you might be at no loss, but commissions (6% realtors fee) and blah blah type expenses will increase your loss or eat up your profit .

I'd like to sell my home and get something smaller, and then use the savings from the decreased mortgage to put towards investing, but that doesn't seem likely without a considerable loss.

Worse, what about unexpected personal losses not even related to real estate (job loss, health issues, catastrophic event, etc.)? 

Unless there were some special circumstances, paying par value for the note will cause general loss as future value depreciates. 

Some we have put into stocks, but we are really at a loss at how to invest the rest.  

Hire an architect to do a feasibility study or at least check your assumptions before you commit to buying the property.The way I understood the podcast guest they weren't rezoning just identifying properties that were zoned already for multi units.

I am wondering how feasible it will be for me to start fixing and flipping homes when I graduate with little or money of my own to contribute to deals and no track record.