Out of curiosity would anyone be willing to share any experience with non-paying renters who've vacated the property prematurely?

@Jordyn Ohs Assuming your heloc is re-advanceable and the rate is higher than your mortgage, I would suggest you pay your HELOC down as quickly as possible with any cash flow from the properties.

Over that we send a default and start the court process if they don't pay. 

I have a client that lives in Hawaii but owns a property in DC area.

You’re paying $70k in “non-deductible” interest in exchange for less deductible interest. 

If you have no desire to actively pursue other investments where you make more than a 2.8% return, then by all means pay it off faster.TYFYS and best of luck!

., Purchase Price: $475,000 ($197.9/sq. ft.).Estimated Market Value: $402,000 ($168/sq. ft.).Financing Terms: 2% interest rate, with a 9-year balloon.Unit B Income: $2,049/month (Section 8 tenant through November 2025).Unit A Income Potential: Similar rent or higher; Section 8 cap for the area is $3,234/month.Monthly Loan Payment (P+I): $1,386.Cash Flow Breakdown (if both units are rented at $2,049/month):Gross Rent: $4,098/month.Vacancy (10%): $410/month.Operating Expenses (37.3%): $1,376/month.Net Cash Flow: $943/month.Key QuestionsWould you be comfortable paying an 18% premium for financing at 2%, especially in a market where current mortgage rates are closer to 7%?

Another option is to invest in the market instead of paying down a mortgage.

If I read the story correctly, your client did not report rental income.

A great deal of accountants work with out of state clients.