These LOCs are typically interest only and adjustable rate, which of course is planned for, again with the equity and the cash flow of the investment, it shouldnt be a problem to at the very least break even, even in the worst of scenarios.

Or take a break. 

How bad do things have to get for them to still break even and how bad does it have to be for them to lose money.

After a few candid conversations, they realized they could negotiate slightly higher rents by offering small improvments..things like better loading dock access or upgrading the security features..turning a so-so cash flow into something much healthier.When you break down your family friend’s situation, it might help to consider these angles:Selling and redeploying capitla could open up opportunities in markets where cash flow is a bit juicier.

A CPA experienced in STRs should be able to break down exactly how to meet material participation requirements in your unique situation.

Last time in my MFD ( multi Function Display) went off line and I had to break off and climb out of the clouds get on top and go back to home base.. that was a 15k  box that broke :( 

si=YIvGsOYgpS-buwek"Devonte breaks it down good.

In addition to the issues with debt costs, the properties don't seem to be functioning in a manner that will lead to profitability or even break even.

Lots of new ground breaking.

Mobile home parks often have unique challenges and opportunities, and it’d be great to hear how you’re approaching this one.If you’re open to sharing more about how you found the deal or approached the seller, that would be valuable for others looking to break into mobile home park investments as well.