3 mos post closing and no renters

[Jem J.]

Hello BP. This is a friend's situation. She bought a property in an area where there are lots of student renters. spent almost 10k for minor cosmetics and repairs. The time they closed was already " off season" to student renters as most of them have setlled in their rentals as school have started. There were several walk through of potentials but no interest to rent. Rent was lowered but still with no results. The big concern is the high monthly mortgage as they took the 10 year plan. They are hurting. They cannot lower the rent any longer as it will not cover their monthly loan obligations. I think they made many decision mistakes in this investment. Not sure what advice I can give. Maybe an exit strategy advice? 

[John Thedford]

Tough situation. I might suggest taking what they can get, maybe eat some cash until they can refi or sell. Losing $200 a month is less than losing $1000 a month.