But if you did the property up right with killer design and great amenities -- I'm picturing cool wallpaper, a game room, boho/modern furniture and a hot tub -- I can see a place here doing well as an affordable Airbnb/STR option just 10 minutes to downtown Denver.

Folks this is meant as a beneficial post and not about good or bad positions.  

If that's not an option then it depends on what kind of investor you want to be.

There are markets today, even with high rates, that are cash flow positive and do have great appreciation. 

Defaulted SFR loans - 1st position only (this has been our bread and butter over the years and we will continue to play in this space).

I was thinking of giving him 3 options.Option 1: He switches to a month to month lease changing to a weekly rent rather than monthly, the new lease will have different rules (ex. such as agreeing to a cleaning schedule and a liter schedule or trash needs to be picked up and placed in a trash can every 12 hours, human waste can not be stored in containers)Option 2: He moves out at the end of March, I keep the security deposit as rent and he does not have to pay February's rent and late fees.Option 3: I'll give him $400 to move out 3 days after we have this discussion.Thank you for any suggestions, I would like to handle this delicately as I don't want a squatter living with me.

that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

Have any "students" or those saying positive things about the program closed any deals?

Really looking to understand our options for financing etc.

You can sell your Subject To on lease option and let the optionee keep up the house.