He sells them for tens of thousands a pop and generates revenue of over $1M a year and has no overhead except his electric bill in his basement for the lighting, a part time employee and of course the food.

If you're investing blind then you have a multiple of disposable income or have no fear of loss.

That gives me additional income and offsets the risk of loss if I have a longer vacancy once they leave. 25% sounds like a lot, but consider what it will cost them to find another rental in the next 30 days that will allow a three-month lease, plus the cost of moving, setting up utilities, etc.There's nothing wrong with trying to help out a good tenant, but don't hurt yourself in the process.

Make sure you get a "Release Fee" on each property; this is an amount that is to be paid to release a property as collateral in the event you need to sell, or if you have an insurance loss that insurance proceeds will be applied to the subject property and not to the whole loan keeping you stuck with an encumbered damaged property, remember they don't make construction loans as a second and the blanket loan won't subordinate (usually) to another lender, it could get messy, so have a release fee stated and understand how payments will be applied.A line of credit is not a blanket mortgage but a line of credit can use other collateral, different animal and it may or may not fit you needs.

Some landlords find themselves in a precarious situation when their rental properties consistently generate losses, leading to financial strain.

A tenant who wants to stay and is on a fixed income is likely to stay a long time which means you won't have excess loss to vacancy/turnover.

He figured out instead of owning the fast food building, own the land underneath and land contract to franchisees. 

Quote from @Kelly Farmer: My experience:Bought: March 2021, $64,900Sold: April 2024, $48,500 - $5,000 (agent fees/closing fees/etc) = $43,500Rental income (rents - expenses): $5,600Average annual returns: 2.9% (approximate)Net loss at sale: $15,800Positives:1.

build a multifamily to rent. lower risk, easier to execute, easier to underwrite. anytime you sell there is a 10% equity loss and capital gains. new construction in columbus appreciates at 8.65% per year. almost no reason not to consider it. land is a buyer market, you can get to better locations than you can buy existing, etc etc etc 

Take a loss if you must.