As a side note, FDIC insurance protects depositor money, not debt.

Tenants will prioritize their debts based on reprocutions. 

Many of the investors I know have dialed back on their private equity investment or have changed to doing debt instead of equity so it was not prime time.

And it’s about to be very personal to you as the one who is going to be responsible for it, and maybe have a significant debt to pay back on it.The vast majority of business owners selling their business genuinely want to see it continue to succeed, even if it has no monetary impact on them.

. - AOA Debt Reporting Service: letter sent w 120 days to pay (with credit bureau reporting) after which it rolls over contingency plan with collection agency getting 38%.I know I would not want the task for what they charge.  

The challenge we're facing is the lack of short term rental data for the appraiser, and we won't know if it will meet the debt service coverage ratio (DSCR) requirements until the appraisal is complete.Has anyone dealt with a similar situation?

The omission is intentional resulting from Fossum’s lead role in a $20-million dollar promissory loan note fraud case filed by the SEC ( Link ), which resulted in a settlement barring Fossum from engaging in similar activities, such as his role with Norada Capital Management ( Link ).The case, filed by the SEC in December 2017 and running for five years, alleges that from March 2011 to June 2016, Fossum raised over $20 million from more than 100 investors through unregistered securities offerings of three investment funds he owned and controlled: Accelerated Asset Group, Smart Money Secured Income Fund, and Turnkey Investment Fund.

This makes targeting distressed sellers, such as those in pre-foreclosure, or those with ballooning debt that was taken out in 2020-2021 when the interest rate was 7.37x lower (8/09/2020 the 10-year treasury was .56%, 1/15/2024 the 10-year treasury is 4.69%) making it very difficult for those that underwrote the property in 2020 to have predicted refinancing at these rates and likely a sale is their only option.

Ultimately responsibly using leverage (both equity and debt), implementing systems and buying good assets with realizable equity  is how you scale while operating a sustainable real estate business.

Using HELOCs or IBC to pay off debt (simple vs amortized debt) method is effective, yet investing in assets such as rental properties or syndications might be a more strategic use of available funds than debt repayment.