For example, to qualify a tenant must:Have used their best efforts to obtain government assistance for housingAre unable to pay their full rent due to a substantial loss of incomeAre making their best efforts to make timely partial payments of rent, andWould become homeless or have to move into a shared living setting if they were to be evicted."

My only option now it seems is to eat a HUGE loss and leave the townhouse and risk paying on that even though I'm not living there (last choice option), trying to add a roommate to the townhouse lease to house hack and reduce my expenses, and then while doing that get roomies for my home and get the mortgage covered on that for the next now 9 months of my lease term. 

If you don't have the knowledge, skills, or experience with the asset class or type of transaction, your risk of loss is much higher.Try listening to the Private Lender Podcast.  

Second big mistake I see is the economic loss to lease numbers.

Hey Matthew, Please see below for a brief breakdown of the fees along with a response to your other questions.Property ExpensesMonthlyAnnuallyManagement Fees$128$1,536Property Taxes$208.33$2,500Insurance$50$600Repairs/Maintenance$48$576HOA Fees$21$252Vacancy Losses$48$576Operating Expenses$503.33$6,040The mortgage would be in the name of both the investor and the builder with the investor being the guarantor.  

It's sad that you are taxed on your passive income but don't get the benefit of passive losses until you sell the home.  

if your in it 40k purchase 100k rehab  your basis is 140k  so it looks like if you sold for 145k you have a tax loss other than recapture.the easement right of way issue is your main issue I would think.. did you not get title insurance that insured your access? 

You take a risk which could result in cancellation of your title insurance and complete loss of your real property without compensation in the event that a title issue regarding your real property arises. 

I don’t think his crystal ball is telling him that he just needs to carry the loss across all these properties for 9 months - he’ll take what he can now, which suddenly includes long term tenants, furnished or otherwise.

Assume those are not reinvested (but in 2 years you could potentially buy another) and after five years you have $60,000 gain from real estate compared to the market.Anytime you add leverage the yields become a lot more sensitive (gains and losses are significantly effected overall).Therefore you should look at it from two perspectives, if you are confident in the market, then for real estate, in order for it to outperform the market you would be looking at either 1.