I'm just curious how BP members have fared during the same three-year period.Most of the loss in net worth was caused due to the devaluation of real estate and the lost equity in people's personal residences.

We don’t want to short sell or sell at a loss now.I am seeking good ideas to solve this problem?

I would agree with Jon that you would take a loss IF this eminent domain taking actually does happen.

You will have a negative cash flow and you will join the vast majority of newbies that fail unless you have a big pile of money to cover your monthly losses.Let's look at your suggested deal, $80K purchase price and $800 rent:Gross rent: $800Operating Expenses: $400NOI: $400Mortgage payment ($80K, 30 yr, 7%): $532Monthly cash flow: $132 LOSS (OUCH!!!)

Even though the rental income may completely cover the mortgage payment you may still have a net loss from the home which will affect your DTI still but not as much and your max backend ratio will have to be below a 43.As Luka Milicevic mentioned it would be better to talk to a portfolio lender specifically that deals in non-conforming products (generally market themselves as "Non-Prime Lenders").

They apparently share profit and loss with the customer and ban all collection of interest. one of their products is called Musharaka which is a joint venture, where a bank and a customer both contribute funds — for either an investment or purchasing an asset.

Although I projected a slight loss, I may actually generate a bit of income. 

Not just the $730k example, but the multiple comments of loss after loss.

I have one that has to be renewed every 18 months), so theoretically you could be in a situation where if you had a loss of income , or if interest rates skyrocket, you could be at risk of renewing the loan.Its not necessarily the end of the world, but its something to think about when it involves your personal home.Also, my understanding is that once you have held a property for 6 months, you can get a new loan and the lender will look at the new assessed value.  

Your insurance should cover rent loss even though you don't have flood insurance.