My opinion is if you are still underwater in 2018 then you need to either be prepared to be under for many years to come potentially or cut your losses.

I'm wondering if anyone can shed some light on the cost of insurance (hazard & fire, liability, sewer backup, loss of income, umbrella, etc.) that a landlord would pay for a rental property in Utah (Utah Valley to be specific).

It pencils to about 9% COC, before the paper losses, and obviously, he needs to store cash. 

They have to be filed as a lawsuit in order to recover them. 

Don't count on appreciation in the next few years to cover your month to month losses.

The alternative is a 17k loss.

As a coach I am intimately knowledgeable regarding the importance of one core difference between pro endurance athletes and weekend warriors: the pros recover like pros. 

@Ann Bellamy a default for a HML in the scenario you describe would lead to a huge loss for them.now as you state maybe a unicorn.. or someone who is totally ignorant... non recourse is 40 to 50% down.You can try dohardmoney.com  they charge up front 3 to 5k with no guarantee of funding.. and with very mixed reviews  some say they got loans.. others have blown 5k and never got funded.. if you want to give up equity this could happen ... you can put 10% down with Gorilla in Eugene but they will want PG and they will want significant upside.so you cant have it both ways  lowest rates HIGHEST risk.... unless of course you simply use your own money then

Erik Johnson Be sure when you interview a CPA ask about the passive activity rules, real estate professional rules, will you need to group future rentals together, can you deduct any losses each year, how does depreciation work and should you get a cost segregation study or asset management report done, which repairs can you write off vs capitalize, how will gain or loss be treated when you dispose of the property, how are the loan costs treated.....if they don't have a good feel for all of this move on to the next.

My impression was that homes sit on the market for a really long time (even nice ones) and the housing market in that area of PA really hasn't fully recovered from the downturn.