Speaking for myself I would never consider a Sub2 unless I knew I had alternative exit strategies to take out that underlying mortgage either by private money, conventional, or other routes.What is the significance of the " default judgement states," versus what we have here in WA, OR, CA ? 

Alternatively, we'd be willing to secure the loan (or some portion of it) with our rental property in Texas.  

After that, you know the process and can actually make it worth your while to pursue collectable tenants for the money they owe you.The alternate option with the PM is to first threaten them with reporting to the Real Estate Commission and then if they don't play ball actually report them to the commission.

Alternatives include the BRRRR (Buy, Rehab, Rent, Refinance, Repeat) strategy and flipping.

Go build your own MLS alternative.

Alternatively, you could reimburse the account shortage now and ask for an escrow re-analysis based on the new tax/insurance annual payments.Check your closing disclosure from when you purchased.

This approach involves work and risk 3) alternate rent models such as STR, MTR, rent by bedroom.  

You upgrading the property, thus increasing the value which in turn could push out the current tenants, contributes to the vitality of that free market, a market that gives the tenants alternative options. 

Alternatively, you transfer the $1,000 rent to mgt company which records it as revenue, just like you would.

any simple alternate solutions you can think of?