To me, the best thing you can do is find a buyer who is willing to buy them from you via a quit claim deed (even if it's at a loss) so that you can start over.

But also working with them if there is a job loss or a roommate moves out.

Two are being forced to sell at a loss this month.

Sometimes before even asking a specific question, they will start rambling a rehearsed excuse story on their credit, previous landlord troubles, job losses, etc.

Our revenues have not dropped due to weather, but if we did get hit hard by a hurricane it could, rather would cause losses in rental revenue. 

I explain they will have difficulty  Renting a quality unit, that I will ding their credit, that I will attempt to garnish their future income to recover what they owe.  

We didn’t even get close to where we needed to be to be profitable and closed down after a large financial loss just 2 years later.

The work is more than a rehab, but if i brrrr I can achieve infinite return (this is how I made most of my money in RE), but an ADU generates poor return (none until the initial negative equity position is recovered). 

However if you don't have a primary policy, or if the original policy does not cover the loss, then the umbrella would not either.

Tenant-friendly Laws: Strong rent control laws can limit an investor’s flexibility in evicting non-paying or problematic tenants, increasing the risk of losses.