Just like in hard RE assets, there are many who overpay and dont last.Ive seen companies raise $10m+, fail at the note business, then pop back up with a different name, raise more money and do the same flawed plan again.

Nice to have a back up. 

Most times it does actually work out better for me and my client because I get to put clauses in the contract or remove things an agent would never let me get away with, because the owner does not know the contracts.I have never sold one that a seller was using a flat fee broker that I could not have gotten my clients EMD back up to the day of closing with no penalties.

My view is, once the whole over sight framework is blown up, the Wells Fargo account jamming rip offs will start back up, the preditory loans too, robo signing foreclosures, the whole wild west works!!

Lastly, a landlord that just quits maintaining the property is an awful person to have to work with, but hopefully they understand the concept of deferred maintenance, how expensive it is to catch back up and are willing to sell the property at a price commensurate with this neglect.Good luck!  

If you hold it long enough as a rental, the market should turn back up.

That's like saying "Oh by the way, don't use the 4th burner on the stove or the house will catch on fire."

If you have suitable backups though it may just be best to move on to them.Definitely a judgement call based on your urgency to get it rented.

We are also looking for additional rental properties but that will come after we save back up :).  

As a backup plan (or several) you need to maintain cash reserves, equity, and cash flow margin in order to keep multiple profitable exit strategies open in case your projections are off.