These houses are utilized like mini private resorts where families will spend whole days of their vacation grilling, laying out by the pool, etc.

There are several resort type STRs around me with pools and nicely done amenities.

I am still bullish and not going anywhere but this will weed out the weaker players.

@Matthew Kwan@Carlos Valencia I lived all my life in Seattle and recently sold all of our properties because of the erratic behavior of the government, high taxes, homelessness, drugs, crime, disdain for landlords, and so on.I'd rather have hurricanes than invest in Seattle so we moved to Scottsdale where there are no hurricanes, no earthquakes, no volcanoes, taxes are low, profits are high, government is reasonable, crime is low, weather is good, world class restaurants & resorts, golfing is king and I get palm trees and saguaro cacti.Don't let the hype about Seattle fool you.

You can be snowboarding/skiing with either a 2.5 hour drive to Snowbowl in Flagstaff or a four hour drive to the east at Sunrise Park Resort in the White Mountains.

The escape hatch of last resort for her will be a VA-covered short sale so it's pretty unlikely it will go all the way to foreclosure.On your end you estimate $50k as the value so the property is probably distressed. 

Another is a last resort and that is to sell the 51% ownership to an investor.) 

EXACLTY  in markets that numbers still work there are funds and  DR Horton and other smaller players building new construction SFRs for rental purposes. but this only works in very specific niches in certain states were the numbers all align.

All of this serves to discourage competition, leaving large portions of our housing stock to be developed by big players like Lennar who frankly aren't innovating.

You also have the other large players like Schwab/TDA, Fidelity, Pershing, Vanguard, etc online platforms, and regional banks and credit unions.