It’s about time somebody stepped up and stopped the bleeding .

@Thomas S. well if I am going to pay someone 10k a month for this job and full health benefits they are going to work the tush off  LOL... 

@Thomas Nance, I would file the eviction notice asap to stop the bleeding.

If they don't like it they can move or require more of themselves to land a better paying job to get more of the things they want in life AND pay the rent.For anyone reading this if you are going to have the "conscious and bleeding heart syndrome" you DO NOT need to be a landlord as you will cause more damage to your finances and investments then you could ever imagine.

My heart will forever bleed Crimson.

I once ran into an angry king kong, and I finally figured I was about to die when I said tell me something if you were in a serious car accident and bleeding profusely, would you yell at people stopping their cars and coming to help you and tell them to get the hell away from you?

If so, that could be your best option.If your rental market is tight, you might be able to raise the rent on the bargain tenant to reduce the bleeding a bit, but sounds like you have limited opportunity to restructure the financing (big penalty) or the cash flow (more capital improvements to get higher rent?). 

So instead of bleeding out savings accounts floating the mortgage we thought about the idea of a LOC since the interest is tax deductible anyway.

Houses in the hood can have a great rent/cost on paper, but they almost always bleed.

He isn't bleeding enough yet to give you a good deal.