Thus we reduced our asking price & found out recently the owners wont budge. 

Just remember that your tenant is probably also very stressed at prospect of losing their job, so best to try and work together to find replacement tenant quickly.Tell him you expect the home to be kept clean and setup a schedule for showing it.  

I could pay cash but that would reduce my leveraging amount in the end.

Talk about Stress and seeing people ruined.. as a lender we have to bring out the bat and go after our money and collateral.. the damage was the LA based investors.. but who saw this coming I had done 1600 plus of these successfully. 

There are ways to have reduced liability and taxes paid, also.There are exceptions to the rule, you can read more here: https://www.irs.gov/Individuals/International-Taxp...

At long last....technology is working to reduce those pesky law fees:Artificially Intelligent Lawyer “Ross” Has Been Hired By Its First Official Law FirmUnfortunately most of the pesky legal problems try to navigate areas of the law that have yet to have cases.  

And I can't really sell at the moment because I don't have anywhere else to go.For the record, I don't want a HELOC because that's not guaranteed money if the bank decides to pull/reduce the line.Lastly, is there any truth (benefit) to having a higher mortgage payment on a rental and thus less profit to report, which equates to better tax treatment, or is it that just nonsense?

Quan Nguyen depends on which part of the country you are investing in.In urban areas the 2% rule of thumb will probably be reduced to 1-1.5%.

The logic being it helps with reducing the number of loans, which helps to get more loans for future investment and also reduces closing costs.I wanted to get this scenario out and see what the risk if any in trying this.

Does anybody have any advice on negotiating a reduced payoff of a 2nd mortgage.