For that reason, I think house prices may well soften over the short-term, but not to a bubble-bursting degree.

If your AGI is under $150K, you can use that loss to offset other income, softening the blow of this loser rental.

Point is the owners may be softened up and it is more likely that they may take a lesser price to get back UC as they may have a time line as well... 

That's why, in my role as a loan originator (I negotiate short sales, too), I constantly counsel borrowers to do everything they can not to go NOD (120 days late)--if they want to soften the blow to their score and still qualify, without the seasoning requirement, for a future loan.

The game of musical chairs is coming to an end and there are going to be a lot of sellers left without a seat if they don't take action and adjust with this softening market.

What that means is that prices will soften a bit to help us out and maybe rent will stagnate or go up. 

Manufacturer recommends nothing but does anyone think I can add a little extra protection, insulation, and soften imperfections in the subfloor?

A newly passed regulation called the Basel III, will certainly not induce U.S. banks to loosen up lending in the next several years, given that they must comply with much higher liquidity and leverage standards by as soon as 2015.Although the Basel III standards have been softened somewhat this month, I believe that lending in the U.S. will continue to remain tight over the next several years.

If you do all of this you'll be far less exposed to loss of property value, and you'll be cash flowing well even if the market softens.

Private Lending could be another option here but generally requires a degree of experience with what you're lending on.The reason I say all this is I meet a lot of busy higher income earners with W-2's (often who like their day jobs) and sometimes the least amount of risk and headache is going passive with others who have experience.