He can try to work out a modification of the loan in some way, and there are literally dozens of different types of modification that may be appropriate for any given situation and may prove beneficial for both parties.  

As an out of state investor, I’m curious how management companies might view this type of strategy.

500 FCF is a lot on SFR right now on a $275k PP - what type of interest rates and rents are you getting on these?

@Li Li, Since the 1031 exchange will allow you to move into any type of real estate anywhere in the country. 

My opinion is that if people were making reasonable business calculations, these types of cases wouldn't even get there as the end result would be a judge having his eyes effectively glazed over and losing confidence in the efficacy of the sub metering solution. 

Meaning how to attract the type of people you want to your STR listings and how the heck you are supposed to know if there is a market for your type of "customer" in the area you are investing.

should I give the neighbors a starbucks gift card or some type of gift? 

It's a dynamic world - if I could find a 3-4 unit that cash flowed 200 a month per unit and hit a 15 plus ROI - i would jump all over it - I just only see this type of potential return (and better) in more depressed areas.  

Instead of this, I find it more helpful to look at percentile performance across the market for a specific asset type, and also to check comps.

It depends on what type of experience you want to have.