Due to my adjusted gross income, I am not allowed to deduct my passive activity losses against that income, and I am not otherwise a "real estate professional."

The reality is, as with any new business venture, the vast majority will fail within 5 years.Most are not fully educated and will make simple mistakes that will lead to selling at a loss in many cases.

Fannie and Freddie took only minuscule losses during the recession on their multifamily products and their current offerings continue to have excellent terms.  

(The vacancy numbers are weighted by county specific vacancy counts, not a numeric average of county vacancy rates.)I put a link to the source of the data at the end.2019 Proj Total Population (& annual growth)1,255,325+0.86%2014 Proj Total Population1,203,7352010 Census Total Population1,162,386July 2015 Certified Population Estimate (NC only)1,190,4732010 Census Total Population: Urban627,87254%2010 Census Total Population: Rural534,51446%As for housing, the 2010 vacancy numbers reflect the impact of the Great Recession.

Your situation is going to carry more weight than property or mortgage information. 

And he needs to seriously get on a budget...a monthly, written budget.If he purchased this as a flip, he needs to just get out of this deal and sell...probably at a loss.

I see a series LLC as a way to avoid getting sued; and an umbrella policy as a way to limit your losses once you do get sued. 

As soon as they stop paying, you at even more of a loss on top of eviction and cleanup costs, and the next tenant pays the manager a leasing fee all over again.  

:-they weight property decisions based more on what is good for the property than their own pocketbooks (within reason)-transparency.

We have been told by multiple companies that the losses are normally greater on the 3-4 family houses verse the 1-2 family houses.