A recession won't completely kill short-term rentals but will reduce the number of clients and the nightly rate until a recovery starts again.Assuming that your STR has sufficient margins to price aggressively so that occupancy can be kept up, there isn't that much to worry about other than a temporary reduction in cash flow.

If you sell a rental with a mortgage or other secured loan, you'll have to purchase your replacement property with a mortgage or pay tax on the reduction in liability. 

We got a 1.75% interest rate reduction paid for by rocket mortgage so we got 2.99% on investment loan.

On zillow, you can see the price history of a property and on ones that were overpriced, they often have a long list of small reductions, perhaps switched sales agencies a couple times and eventually, they sell for significantly less or are still unsold.

$9,448 annually is a 12.6% cash on cash return, which isn't bad keeping in mind that he is amortizing his loan over 15 years and will be getting a nice principal reduction every month.You say drop the price to $300,000, I agree if that's possible.

Do not take a reduction in rent since that could bite you in the posterior if they default shortly after that (the court will see you were accepting less rent than called for in the lease, hmmmmm).

Analysis as follows:Cash flow: $150.00 per month X 12 = 1800.00Principal Reduction (equity creating from tenant paying mortgage) = 2000.00 year over your time horizon.Total benefit: +3800.00 (cash flow + equity) year 1.

Anything above 10% when you add in food and labor starts getting into the danger zone where they shut down or start asking for rent reduction help to stay afloat.

Hi BP,I have a refinance question...Is it worth or a smart move to refinance for 1% reduction in rate while 9 years into current loan.

Also take pictures of any property left behind to document condition, as they may claim you damaged it and try to get reductions from what they owe.