While landlords hate to drop rents, and resist it like the plague, make no mistake that during a downturn your income will fall even if you don't drop rents.Vacancies will increase, credit loss from non-paying tenants will increase, eviction costs will increase, you'll have to offer concessions like free rent or temporary discounts to attract tenants and keep the property full. 

It just seems a little off that the owner that bought last year would be selling a property like that with that much of a loss in a hot market.

Would you dump money in to attempt to correct it permanently or cut losses and try to sell?

If one year went by before employing I have no loss on the Heloc but i would on the refi.Lets say I employ this Heloc to its fullest on my second deal. 20k down at say 8% today.

We are also looking for wholesaler just to get the 285k since we are already in a loss for sure.

I think any STR needs to look clean, which is why we lean towards white and light shades of gray with only black or navy blue accents.

Based on a conversation with an individual that works in the loss mitigation department of another mortgage lender.

Just trying to figure out where unrealized losses play into capital gains when an investment property is sold.

Never speak for the insurance adjuster or carrier regarding what will be covered during a loss.  

I didn't hear whether it was ever resolved, it would have been an ugly mess WITH title insurance, and a complete loss of any value without it.You'll never see a big bank lend without title insurance, and it's almost always a cost born by the borrower (read: "you want our money, you pay to protect us")