They are profiting more by them not being rented than them being rented, based on what you’re saying.

The space is not very big and I am thinking that more people would be interested in renting it if the bed is there.

I’m still less than 50% leveraged so I feel comfortable if the economy crashes and I have to reduce rent or have a lot of vacancies.

The pro's for me were that I didn't need to chase after renters for rent because Section 8 mails it to you directly and the yearly inspections were a pro for me because I know what I need to do in the house.

"for rent by owner", investors)-search for non-homestead properties in your county and send postcards to those owners that own homes that meet the criteria you want to focus on-network with real estate attorneys -network with trustees in banks that offer trustee services-look up court records of landlords who have filed their own evictions and send them postcards -network with HOAs that have non-homestead properties in that association -when you see a "for rent by owner" sign in your area, send the owner a letter -join Facebook groups (for rent by owner, landlords) and being to contribute -improve your SEO on your website-find someone who can help you gather landlord info from Zillow, etc.

Is he just going to pay half the mortgage in the form of rent are is he going to hold equity/title in the property?

We rent rooms per week. 

Id say rent it and refinance it and go back to the drawing board later when the local market rebounds 

Very low unit count and the rents weren't as strong as I wanted them to be. 

It depends on the number of Units, Residential or Commercial, Apartment Complex or mix of Single Family and Multifamily.Under 25 unit  - Tenant Cloud, RentechUnder 100 - Then Doorloop/Buildium.100+ - AppFolio, Yardi, Rent Manager.Apartment Management : Yardi seems to be wildly usedSingle Family ( Mixed ) - AppFolio seems to be popularRent manager has a good customer support team.