Looking for creative solution

[Ron Czecholinski]

I have a friend with a large house that had it empty for two years, not able to sell or rent it (too big for most people). I was able to help by creating 3 suites and renting to 3 single peoples. It still doesn't quite cash flow but size and zoning would allow for 2 more suites, but would need renovation to create them.

The problems are the owner does not have the money for renovations and is upside down in the mortgage (worth 25% less than he bought it for). I thought about controlling it myself with a long term lease option but the upside down mortgage is a problem. I am also not sure if about the cash flow - the current value is around $300K and the loan is considerably higher. It needs around $50K for renovations for additional suites, and rent would be around $3K plus utilities.

The upside of this seems to be a good solution for this house. Any ideas that could help my friend get out from under this and me to make some money?