I suggest selling and avoiding the capital gain tax under section 121 so your friend can start fresh.

Well that's what I'm trying to figure out, from a room-mate perspective, if the decrease in what the two non en-suite bedrooms needing to share a bathroom with a third (fourth in total) roommate is worth the extra rent I could charge. 

However, from a rental perspective, there is potential due to the underlying fact that no one wants the responsibility of owning there own home.

Sounds like you'll have to scrape the lot and start fresh out of your own pocket.

Already, when presenting an offer investors and their representatives will need to discuss the best strategy from the seller's perspective.

From my perspective, you pay 10% for doing nothing more than cashing rent checks.

I come from the a ticketing background and can provide lots of resources, connections, and perspective on the ticketing space (including my thoughts on the recent Ticketmaster news).Generally looking in and around the Missouri-midwest area for our first BRRRR property and am fortunate enough to have a general contractor as a friend/neighbor who will be a part of the business. 

Think about this from an investor perspective.  

Quote from @Carlos Scarpero: Studying this whole note world and I'm curious....From a borrower perspective, what advantage do they have going with a private lender vs going through a mortgage company/broker?

From an accounting perspective there is no return until the negative equity position has been recovered making it one of the worse returns on investment.