There are some other small value add plays I saw with that building though, such as converting the laundry room to coin-operated units and adding more storage/converting the garage. 

Sell it now, net gain about $40-$60K after taxes, commissions, listing price, etcTo properly and adequately answer this question, one would need to know your strategy and goals.Strategy A is based on cash flow to support living expenses.Strategy B is long term wealth building - appreciation (market and forced) combined with principle pay down, depreciation, etc.If you strategy is A, then you should sell as this will not turn out positive for several years down the road (unless you utilize some sort of house hack play, vacation rental to increase income, or any combo of increasing income and reducing operating expenses - which by the way you skipped a lot of those in your analysis so your negative monthly cash flow is actually greater than you explained.)If your strategy is B, then by all means keep it and enjoy the likely future appreciation, amortization and depreciation deductions to offset your actual loss each month until the unit goes cash flow positive.

I would suggest a minimum of 9 months of debt service. 1 month is playing with fire. 

Sometimes you need to play with fire to really learn I guess 🤦🏼‍♂️

Not too shabby since it was something he could afford 25% down and is making a small profit each month.As far as resale, we buy and hold so that number doesn't come into play for us. 

If you want to really play hard ball, contact the police and let them know you have a squatter.

There is a the way of taking it from non to repaying again and seasoning it for 6 months and resell it.You could always do a Deed in Lieu of Foreclosure and get the house back and then run either an REO play or Seller Financed route.  

I'll be selling one of my first investments next month, and I can finally have the ammunition to play in the cash buyer league.

Now, your performance history will play a greater factor. 

That's where a mix of mass mailings to door knocking (not my cup of tea) comes into play and you might be able to do a "cash for keys" type deal.Does any of this help?