Downside is if you have more than a month in vacancy you lose that income and it will take time to recover that loss. 

And even when you do refinance - it will take a year or more to recover the costs associated with the refinance (the closing costs they charge for the refi).  

If Tenant Defaults under this Lease, Landlord may exercise all rights and remedies available under applicable law, including the right to: (i) terminate this Lease; (ii) regain possession of the Property through an eviction or similar process; (iii) recover from Tenant all unpaid Rent, including unpaid Monthly Rent, Additional Rent, Late Fees and, if applicable, holdover Rent for the period prior to Tenant’s delivery of possession of the Property to Landlord; (iv) recover all Rent payable under this Lease for the period from the date of termination for Tenant Default through the stated Expiration Date, less the amount Landlord is able to collect from any replacement tenants for that period; and (v) recover allreasonable costs and expenses incurred by Landlord in repairing any damage to the Property, caused by the improper useby any Occupant or any guests of an Occupant, less any amounts obtained from the Security Deposit.

Please keep us updated and really hoping it all works out and you can at least recover initial capital. 

If after the repairs were done, I would be asking my attorney if I can recover some of those costs. 

I have been reading the BRRRR strategy by David Greene and while reading about when you refinance to recover your original invested capital I was thinking about the down payment.

@Marcus Auerbach we have a similar problem with OOS lumping the 5 million suburban population of Metro Detroit with the City of Detroit.While the suburbs of Detroit have already recovered, our good news is the City of Detroit is now also recovering:)

If you ruin your credit it can take years to recover .EVERYTHING is expensive and  it is showing no signs of stopping .

Those same people are now left with their tail between their legs as not only are they not getting 18% they are losing 50-100% and will take a close to a decade to recover those funds. 

After digging alot I found out Yellowfin has been suing to recover 2nd mortgage defaults from 2007-2009 housing crisis.