You're going to want to start by checking with local zoning and planning to determine is the home can become residential assisted living.

He simply treated your STRs as LTRs. 

Would the demand in the area support simply owning some lower quality but comfortable and well run apartments that already exist, where you don't have to do any fix up and can still make a profit at the lower rent?

The lender is simply looking to repossess the property through the foreclosure process.Are the homeowners at all affected if the home forecloses at this point?  

There will be MANY times where things do not work out in your favor and most of the time things don't work simply or smoothly BUT over the long haul its worthwhile.

I'd love to hear the story and circumstances if someone has one.As stated, the amount paid is determined by the adjustor.

A conventional mortgage is simply the best you can get. 

This matters as it helps determine the "placed in service" date. 

Still too early to determine lessons learned

It's a bit of a variation on the Ponzi scheme, and PM owners can get themselves into this rather innocently at first, and it spirals out of control.Once a PM realizes they are insolvent, they simply turn off the website and phones and walk away.