If the bed was mounted on top of the desk like this people could live in a very tiny area. 

Even a tiny one. 

Wouldn't someone rather work on their computer outside in a yard than in a tiny room? 

I’m not in CA where I can charge $1000/month more for a tiny garage conversion.

If your mortgage payment was $500 per month you would have at least a tiny bit of cash flow. 

This might sound silly, but have your most honest friend come over and do a walk through with you and point out every tiny cosmetic detail that should be fixed.

I'm looking at small tiny strips or former bank buildings as a potential flip.  

By selling their present house they'll be able to get a large house inland and occupy a tiny percentage of the total meaning a terrific investment. 

Ideally each would have a tiny kitchen that is modular and customizable for their needs so that big kitchen mentioned above could be eliminated and 2 more units added. 

Landlord judgments can also make it hard to rent in the future, something worth reminding them as a reason to work with you to pay the debt...Another option is offer them a cash settlement verbally for a tiny portion of what is owed.