Student Loan Rehabilitation Amongst Coronavirus & Investment Prop

[Catherine C.]

Hello, I hope you all are doing well!

My friend is looking to buy a $85,000 investment property in Upstate NY as soon as possible, it's a duplex and he will rent both units (one to his mother, who is looking to move from her current house ASAP). He has a couple of thousand dollars in student loan debt that is in default (no more than $5,000, so not a ton)... he is looking to go through the loan rehabilitation process in order to pay it off, to avoid further hurting his credit score. 

I am aware that student loan debt, especially defaults, can hinder the process of getting a mortgage, however his past 2 years of employment are steady and sufficient. The property of interest is very cheap, but this would be his first home purchase. He could pay off the defaulted loan outright, but if he doesn't go through the rehabilitation program for 10 months then it will remain on his credit score/history. 

My question is: 

Now, being in the time of COVID-19, does it make sense for him to start the student loan rehabilitation process? Should he wait on this until after he buys the property (pending if he can get a mortgage) or until after coronavirus? Is it better to just pay off the student loans and take a hit to credit score? Trying to think of the best way that he can 1) pay off the defaulted loan without further hurting credit score and 2) getting approved for a small mortgage for this investment property. 

Any advice would be extremely appreciated. Thank you