I don't want to sound like I'm victim-blaming here, but the reality is there's no free lunch. Investments are not risk-free, and, as you've discovered, there's a reason you got these properties at such a low cost. It seems like your real estate situation can't go on like this forever, right?

> selling my properties would be a ruinous move letting go of my most valuable assets that are the only toe hold I have in this economy, and may threaten my ability to become a homeowner potentially ever again, depending on how this economic future plays out.

Despite these negatives, it's possible that selling is the financially-smart thing to do. Keeping your properties may also be a ruinous move that could cost your ability to become a homeowner ever again. It's unfortunate, but it sounds like you need to choose whichever is the lesser of two evils and stick with it.

> If i was bestowed some gift of capital, I could complete the renovations and make the house income-producing.

As an alternative, if this is actually true, then you'd be the perfect candidate for a loan against your house. People commonly get emotional around housing and debt, but there's no room for that when you're struggling to survive.