People sometimes make bad decisions in life and you have to decide whether it is forgivable or not.

Hate me all you want, but it's my business and my money, so sell me for what I want to pay or have a nice life!

Edit: And taking 10-20% equity on a deal like this with an experienced investor might be completely worthwhile and life changing to be clear. 

It's one of those things that you just have to keep on keepin on because at the end of the day, it only takes one seller to change your life.

Some people just don't have good mentors in there life, and/or need to learn through mistake.

Any recommendations for institutions that can extend a line of credit backed by a whole life policy?  

2-4 paid off properties in great areas with minimal headache is likely life changing for most people who don't overspend monthly. 

At the end of the day, that is life however to Stuart's point, you may want to consider investing in better areas where this does not occur normally if this is an unsettling occurance for you. 

It creates a lot of friction with other tenants and normally creates a poor work life balance for the manager.

Ask anyone with investment property and they'll tell you it's not passive.I earn enough from investments that I could be financially free for life, assuming nothing major happens.