It’s crucial to have a solid agreement to mitigate these risks.The Ugly: Without clear agreements, co-ownership can lead to legal battles, credit issues, and potential loss of property.By carefully planning and seeking professional advice, you can navigate this situation effectively and find a solution that works for you and your family. 

remember payments may only be 400 a month at best.. 6 months reserves is a whopping 2400 dollars.. so someone theoretically with less than 10k in cash could get into these properties.. this William I personally think is highly dangerous for lender and for buyer... its not losing the 10k that's nothing its getting your personal credit trashed when you can't make the payments because you lost all your cash.IMHO if you want to be in the rental game you need 20 to 30k liquid at anyone time that you don't have to borrower etc.. this will insulate you from taking a loss. as you build units of course its not exponential but you need a base.And since this is not TRUE cash equity only paper equity there is no hope of selling them for a profit or what you have in them.. 

Your thoughts and suggestions are greatly appreciated.Leticia My view is AB1482 requires you to negotiate with tenant any significant change of lease terms (loss of garage definitely a change of lease terms, loss of yard and construction zone may be change of lease terms) and your tenant can likely block your efforts.  

And what's the long term vision: Is this 1 house or you plan on building out a portfolio?

If he is broke, its just a waste of your time, and I would say cut your losses now and consider it a lesson learned.

Finally , I have found a realtor company three years ago in PA.They helped to sell the property for 90% loss.

Otherwise, it is pretty hard to claim the loss as STRs are generally very profitable.

Hope it doesn’t sour everyone from chasing their vision.

If you cut your price to $1350 a month and placed a renter after 30 days, your total loss would be must smaller.

Even if not required, I suggest getting rental loss coverage on your deals. 6 months is suggested.