Bank financing for new construction, HML, and private money is pretty much frozen right now.More importantly, have you run the numbers, I mean really run the numbers on this?

My credit isn't frozen, either.Thanks!

Here's what to do:-Document all the damage and get quotes-Send a letter to the Section 8 tenant stating they owe X amount over and above the security deposit - include the list of damages and the repair costs-Have the repairs done-Once the courts reopen sue the tenant (I've only ever sued in small claims though it sounds like you would not be able to get the full amount of damage in small claims as it's capped at $5000; so you can either sue at 5K or hire a lawyer, which is likely not worth it as lawyers are expensive)-In the event your friend takes the tenant to small claims and sues for $5000 and wins, you then go to the Housing Authority office and show them the proof (photos of the damage, contractor billing, supplies, etc.) so the tenant's voucher is frozen (it will be frozen until they pay you; of course there's a chance they won't pay you the 5K)-After a set amount of time (where I've done evictions it's 30 days) you go to the prothonotary's office (mine was located at the courthouse) and for a small fee you can get a lien against the tenant.

(I do not stand by the following information, please perform your own due diligence to confirm its accuracy)Landlord Relief Fund- The Secretary of HUD will reimburse lessors for any loan payments made during the suspension period- To be eligible for this reimbursement, relief applicants must adhere to the following:For a 5-year period, the following must be adhered to:Monthly rents will be frozen to the amount charged to the unit at the beginning of the suspension periodTenants may only be evicted for Just-Cause reasonsTenant applications may not be discriminated against based upon income, gender, sexual orientation, criminal record, credit history, nor immigration statusNew vacancies in the property must be announced to the public The lessor may not collect an arrearage in rent owed by any tenant as of the expiration of such 5-year periodLessor may not retaliate in any way against tenantsLessor may not report any tenant to credit bureausAlso during the suspension period, tenants will be reimbursed for any payments made to the lessor by HUDA tiered-system will be put into place to determine landlord relief priority.

I am utilizing and storing lines of ridiculously cheap credit now in case they get frozen later.Normally a house and apt holder I will be looking into industrial, warehouse, retail and office niches if owners tap out after the beating they must be experiencing now.These niches have been on my radar for the last year or so but will become more of a focus. 

@William Garcia nowadays non hard money I/O loans are hard to come by in residential real estate (especially now as non QM loans are frozen at most banks due to the pandemic).

@Pete Storseth The non-qualified mortgage programs like you are talking about are currently frozen until the servicers are bailed out. 

Its not prudent to sit frozen and think you know what is going to happen.  

Everyone was frozen in time, hoping to wake up from the nightmare that only a total lockdown can create.

However, I understand they have frozen opening new lines of credit for new customers since COVID.