Bergen is definitely very hot.The bottom line is you need to reduce the price if you've been sitting for 4 months.

Very stressful when problems arise. 

Vacation Rental folks should also anticipate paying retail and having the nightly rents subsidize the cleaning costs, but it will be profitable and included stress...even if spending retail for homes.

To reduce capital gains?

In doing so, they have reduced their mortgage each month, reduced the down payment, save on total interest paid, and several other payments also.

@Paul O'ConnorGet other flood insurance quotes.Borrow less until the payments are reduced enough to get back to positive cash-flow or buy a lower interest rate or combination of both.Raise the rents.A different lender won't get you out of flood insurance.

I just want to make sure I do it right as managing my friend's property is more stressful to me than my own for now. 

Tax value is intentionally below market, so they reduce the risk of owners disputing tax value.

They do the math and figure they can get passive income, without the stress of running a business.

Reduce that list to the ones in your desired area(s) - then drive those areas to view ALL of them.