But, of course, you must do due diligence to ensure the market will not recover in the short to medium term.What are the signs of a weak or stagnated market?

So while yes, 100%, over a long enough timeline real estate at median has always risen, specific neighborhoods have fallen from grace and generations later never recovered to par (inflation adjusted that is). 

But the moment the GP disengages, or the market supports an exit with the lender recovering their principal, the can-kicking will stop and the action will start.

While it’s frustrating that the tenant is still there and not paying, turning off utilities could complicate the situation and potentially lead to legal consequences for your "friend".In the meantime, document everything (the tenant’s non-payment, the lease terms regarding utilities, and their attempts to resolve the issue) to present in court, which may help recover the outstanding balance later.

Hope you recover quickly John

It has gotten harder as housing values have fully recovered from the 2008-2010 real estate crash.

@Logan Lambert well my section 8 tenants that are currently in there are living pretty thugged out and I’m sure that when I need to recover the unit that it’s going to be significantly damaged due to the fact that I had an inspection done three months ago and wasn’t happy with the pictures I received.

Should I recover 1500 from him or 500*12?

recovering this negative position can consume years of the actual cash flow when using realistic expense estimates.  

So, now almost two years later, I've had to close my flipping business because I can not seem to recover from this loss.