Or, is the loss carried forward and only applicable to the actual property that showed the loss?  

That being said, if the deal is good I would consider getting recourse debt because the process can be much quicker, easier and they may have other terms that make them more favorable (i.e. no pre-payment penalties, wrapping in more of the loan cost, no money down via seller carrying full second, etc.).

The purpose of this post isn't really to argue about over extension or what is an appropriate level of debt one can carry.

She has been carrying those as well in fear of losing the home.

Doing my first flip in South Florida and my lender requires me carry insurance.....bind a policy before going to closing.

You're in for $100K + carry costs, which should be a couple of weeks worth of homeowners insurance, taxes and utilities.  

When conducting a 1031 exchange, you carry the basis.

Spent hours scrubbing and go much of it off.

If you can afford to carry the expenses prepare yourself for 2 to 3 months of no rents while you renovate and wait for a new tenant which is why I’d maybe do one apartment at a time.

It also carries a declining 5 year, 5% pre-payment penalty - Is this customary?