Four plex in Jackson TN

[Derek W.]

My friend has ben struggling with his long distance rentlas for as long as I've known him. I finally got him to email me details. Please let me know what options you see for him. I think he is ready to off load them however he can to not have the headaches. Here is what he emailed me:
Here's the details about the property in Jackson, TN.
The Address is: 32 Brianfield Cove.
We owe about $104K
Currently, it's financed on a 10 year interest only loan at 6.25% with payments of $585/month. Taxes amount to about $2400 and insurance is about $1400. Indymac is the holder of the loan, and I started doing impounds last year to spread out the taxes.
It's a 4-plex, one bedroom units. Average rents for a 1 bedroom unit are $400. I've been asking $375 to get renters in there.
Because of a bad management company, I've had trouble renting units for over a year. Upon getting a new management company, I found out there was about $5K in damage between two units. The damage was flooring-- carpet, linoleum, blinds, refrigerator, and some other minor things.
We authorized $1200 in repairs for the 3rd unit to be fixed just so we could get it rented.
Once we got with a new management company, we started getting renters. Currently, we have 2 renters, and a third is lined up to go in this month.
The 4th unit still needs repairs-- new flooring. The repair bill is estimated at approximately $3K.
We are currently at the point where we cannot afford to make another payment. With our previous management company debacle, we went 6 months with little or no income on the property.
We cannot afford to keep the place. Once the 4th unit gets rented, it will pull in $1500/month.
We will be lapsing on payments starting this month-- January.
The value of the property is near what we owe. The comps in the area range from $96K to $120K on recent sales for other 4-plexes.