The seller receives the last and final balloon payment.

As a last resort you can file a lawsuit which will hang over them  - that is your only point of leverage. 

In my opinion too many first time syndicators & individual buyers got burned in the last gold rush because they did not have someone on their side and solely relied on the listing ( sellers ) broker to provide them with the information.

Things were going bad from day one however we wouldn't be aware of it until late 2017.It started when 1 of our properties got burned and when started an insurance claim learned that the policy the management company has purchased for us wasn't covering the cost of property purchase and their savings of $20/month cost us loss of thousands of dollars.That was the start of our awakening and we started checking all that was taking place and we have questioned all the different bills and reports that were provided to us, during that we learned that 2nd of our properties was abounded by the tenant and the months late rent payment wasn't questioned by the management company, not only that but thieves had broken in to steal all appliances and vanities, created damage and leave the property completey vandalized, a squatter had taken over the property and we had to go thru eviction process.Needless to say we have dropped Mousa and his so called management team (Omar and Wanda) and hired another company to take over and conduct a full due diligence on our properties which helped us to find out that on a 3rd property the management company had failed to fill out correct paper work and the tenant was not paying her utility bills for months and that mistake of paper work forced us to settle thousand of dollars past due bills with the city, that's on top of the fact the tenant was way past due on her rent, this property was so badly maintained despite the fact we have paid thousands of dollars to Mousa and his team for various repairs they have reported and invoiced for.As you can imagine the poor management of this company had caused us nothing but losses that are at this point estimated in tens of thousands of dollars.It is clearly our responsibility of not checking this company in details before engaging in business with them, however it is this company lack of responsibility and management that caused our losses.Be aware and check them thoroughly before engaging

Just be mindful that the 401K distribution will be subject to A) Federal TaxesB) 10% PenaltyC) State TaxesIt may be more advised to take a 401K distribution in a year where you are not making as much money as your overall taxes might be lower.The question you have, is will the return on the real estate that you purchase, out weight the return that you will get in the stock market that it is invested in?

I'm sorry but would really appreciate any explanation you can offer.obviously for original poster, if project drags out or more costs then annual return quickly falls below recent S&P 500 13% return last 20 years

But your actual IRR is much higher because of amortization and depreciation.The last big thing to consider is the capital expense risk to your monthly cash flow.   

Hi, thank you for reading this,I have a low performing STR, on which I have incurred losses in 2023.

I know I made lots over the last 25 years.

The factored base year value (FBYV) of real property is the market value as of 1975 or as established when the property last changed ownership or was modified due to construction.