There are some accumulated passive losses but not much.

If the didn't do that then they have converted to LTR or MTR rentals at a steady monthly income and have the tenants take over the utilities which offsets the loss of more income.

.: Massive loss of accrued interest and principal????

For a little background - I have been taking a big loss on this property for the last year for reasons out of the control of my property managers.What would you do in this situation?

Most of the failures I’ve seen when investors attempt to “scale” a non scalable business result in only moderate losses and temporary setbacks.

Push forward with your eviction and cut your losses. 

When you add up legal fees, lease fees, loss of rent, etc. it can add up.

In this market i would only go that route if you have the resources to cover their initial investment so there would be no loss of capital if things go bad.One of the syndications that i am an LP buys MF, rehabs the existing units, converts tbe garages into max number of studios, brings all units to top of market rent, and exits with max NOI.  

@Kelly Taylor If you are going to invest more in RE, wait until you have released losses to do the Roth conversion.

The only nice things in Elmira is the food at the dive bars.