I still float above poverty (Not too proud to admit it) but own 3 rentals and 8 units.

If prices adjust, those who are over leveraged with floating rate, short-term debt could get crushed.

New Kitchen countertops and new appliances in all bathrooms, replaced cabinets with floating shelves and repainted all cabinets .

Mainly because as a commercial grading contractor we would have to float the project sometimes for 45 days before we saw a penny.

In this case he has used leverage in numerous cases including his insurance company (financing your investments with float is leverage though very low cost leverage), options and more.

You must have tried to buy that in appreciation.Given income at 100% occupancy is 25,200 a year and with 50% costs.10% property management30% Operating and expenses10% vacancy lossYou are at 126,000 sales price and you said your property doesn't average fully rented just sometimes.You will have to float it for awhile or do a loan workout or cut elsewhere or just let it foreclose.You can try to short sell it as well.What does your credit look like now??

As the payback date floats later and later the likelihood of getting paid back decreases.

The situation is such that the current owner is floating between being under water and 100% leveraged.

I would also want to verify how long these people have been tenants, as it is possible to "pack" a rental house with friends/family and pay the rent on their behalf so that it appears that the place is a successful rental - then, suddenly, when you close, the tenants float off into never never land. 

In 2023, they don't see the same risk now, residential mortgage delinquency has just entered a new low this month alone.In 2023, the problem only lies in selected regional office/banking sector that has huge liability ratio between their cash and bond/loan  portfolio ratio and also in CMBS market due to floating rate(expected).