First of all treating rental income as a hobby is a very bad idea. 

Common syndicator game of throwing out huge returns when other funds are going under because they want you to only look at that shiny number and not what their past performance has been@Chris Seveney 25.7% Annualized Return / 21.7% IRR.This was my first passive investment and yes I was under educated, naive and attracted by the expressed returns. 

The income potential for STR How did you find this deal and how did you negotiate it?

We have an upcoming meeting with them to see how we can extend the loan a few more years to make the total monthly payment including installments for the annual property tax bill, which we’ve had to pay for them this year since they were late the last couple years and had to pay interest to the county. 

However, this would force them to move out, lose their current rental income, and have to pay rent off their limited salary. 3.

Since you said you don’t really need the cashflow because you are sitting on huge reserves do the math based on income instead of cashflow.

They have come to me about buying the home but I have a collection account about to fall off my credit in a few months so I am not sure I would qualify (in addition to my income may not be high enough).Are there any workarounds to maybe purchasing the home?

Don't be suckered into buying cheap properties - unelss you know exactly what you are getting into.Here's some copy & paste advice that applies to just about any Midwest rental market:--------------------------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

You live in one room, rent out the others, and pay your expenses with the income.

AppFolio is great for property managers, but investors often use Stessa, REI Hub, or Buildium for tracking income, expenses, and tax reporting.