And, it's still negative cash flowing.Of all my real estate activity buy-and-holds in the ensuing 15 years, this is still my worst one. 

Some texting back and forth ensued, but she would not provide further details on what "working on it" meant. 

In Ga, in Atlanta in my REIA, GaREIA.com, an expert investor specializes in this deal type tells me, her door knocker team often has the wifes surprised at the door that their house is up for auction in 4 weeks, a huge argument ensues on the door step, crying, screaming...

After the first month, they pretty much stopped paying and the tragi-comedy ensued.

There was no out of pocket or loss to the owner, so litigation ensued, eventually (one year later) the owner lost and had to refund the money we had in escrow.

But I'm also a firm believer in picking your battles..... not everything is worth the hassle, headache or battle that ensues....

It feels an awful lot like the strategy that's been going on in Seattle for 1/2 a decade (list below market, frothy bidding wars ensue).We are from out of state, and so says our earnest money checks.We're getting about 5% of our offers accepted, and that's recent. 

There was no out of pocket or loss to the owner, so litigation ensued, eventually (one year later) the owner lost and had to refund the money we had in escrow.

There is a world of difference between the tenant who comes to you in advance to indicate impending turbulence in their ability to pay their rent on time and the one who simply does not pay and says nothing - one is a "good" tenant with a problem, the other is irresponsible at best or simply a problem coming to fruition.If you screen well and clearly articulate - up front when the lease is signed - your expectations of the tenant and the course of action that will ensue in the event of a breach, you will spend surprisingly little time sending notices or going to court.  

Hopefully, a recovery ensues and values continue marching north.