Help Avoiding Short Sale - Overpaid Home

[Sarah Belzer]

I am fairly new at investing and have a motivated seller friend who is in a tight spot. Any tips and advice are welcome!

He purchased his townhouse in 2016 and it was new construction. There is no equity in it, he purchased it with 0% down VA loan.

Houses appreciate in his neighborhood, but townhouses do not nearly as much. He paid $225k when the comps show it's closer valued at $205k-maybe $210k

He had renters in for about a year but was not cash flowing because of the high HOA fee. Rents are about $1500 while his monthly payments lay around $2000.

He now is tired of the townhome problems and wants to short sale, but I am trying to see if there is another option to save his credit and create a win-win for him.

After looking at the comps I'm having difficulty searching for that solution. 

Does anyone have any creative tips to getting out of overpaying for a town home?? Thank you in advance