It is not unusual to have negative cash flow for a House Hack since you are not collecting rent for one unit while you live there.  

Is that a valued resource investors use? 

If you are working towards financial independence or to leave your day job, and you're comfortable with the idea of being a landlord, I like the idea of investing the resources to update the house now, and putting in a renter.

Dont know what jurisdiction you are in but MD for example has a housing and homeless hotline that gets the resources a tenant might need to find new housing or shelter assistance.

I think Orange County has a deal to collect taxes through AirBnB and maybe others like VRBO but it's more or less STR-friendly.

Your loss as a result.You can try to take the tenant to court to collect but based on the fact that you neglected your property I would suggest that you just do the necessary repairs and sell the property.

Check out the Ultimate Free Beginners Guide as well as other resources under the education tab above.

Is it foolish to be in the read for $2500 per month having a $6k mortgage and collecting only $3700 per month???

Worst case they hit your credit w a collection, which won’t hurt it more than 10-15 points.

(choosing tenants that are collectible and pay their bills on time).