Class C tenants tend to be very working class, living pay check to pay check and have been disproportionately affected by the current job losses.

Your loss may help offset the recapture tax. 

A bit of time air sealing and adding insulation as much as possible will go a long way to minimize system costs.

The Missouri Supreme Court in Ethridge apparently stated that for equitable subrogation to apply, the party against whom the doctrine would be applied (USAA in this case) must have "engaged in fraudulent conduct or committed acts bordering on fraud that created the condition that caused the lender a loss." 226 S.W.3d at 134. 

I’m actively working on automation and an employee base to minimize that affect, but I still know there will be cost.

So I decided to cut the loss, have the hard money lender take ownership of both properties so I could just walk away. 

My assumption here is that your paper return showed a loss for your rental, and thus you are being excluded from using that as income. 

I personally feel like the market will get hurt by job loss, but people that are looking to move to the suburbs for better schools for their kids, etc are still going to be in a position to do that and demand will remain high.

Mobile home parks are more return for your money since they are all located on the same property the taxes and all other upkeep cost are minimized, compared to rental properties that are all seperate

That is a lot of loss, and I would say you would probably come out ahead hiring security in that type of situation.