As already mentioned, he wouldn't be able to use rent from roommates to help qualify but based on the numbers you shared there should be a VA option available considering how much flexibility there is. 

Thanks.I did see PassivePockets mentioned here but was not quite sure what it was about. 

The tenant is understandably frustrated and has mentioned safety concerns due to slipping hazards caused by the water.

But – always do your own due diligence, even with the companies mentioned above.

@Bret Hudson: I've been a heavy user of both websites you mention and I find your comment interesting.

Alot of podcasts I have been listening to have been mentioning Indy and the surrounding areas. 

Assuming the ARV you mentioned is accurate, at 75% LTV you'd be able to pull enough equity to cover your existing payoff, refi costs and walk away with a good chunk of cash in your pocket.

I don't even mention interest.I did this recently and the guy picked the higher price with him carrying the mortgage for 5 years with no interest.Turns out a probate for one of his parents needed to be done so we are paying for this.

And as mentioned solving problems 4-profit, there is a LOT of $ out there from other high net worth people that is desperate for a good manager.

As mentioned above, have good comps.Take a look at the S8 list of available properties so you have an idea of what your prospects are coming from.