By the mid-1970s, Fahey's output had abated and he had begun to suffer from a drinking problem. He lost his home in the dissolution of his first marriage, remarried, divorced again, and moved to Salem, Oregon, in 1981 to live with his third wife, Melody. He soon met Portland guitarist Terry Robb who would serve as his producer, arranger and accompanist on several albums for Varrick, a subsidiary of Rounder Records. In 1986, Fahey contracted Epstein-Barr syndrome, a long-lasting viral infection, which exacerbated his diabetes and other health problems. He continued to perform in and around the Salem area, and was managed by friends David Finke and his wife Pam. The trio attempted to keep Fahey's career afloat through radio appearances and performances at small venues. Fahey broke up with his third wife, and his life began to spiral downward. He made what appeared to be his last album in 1990. Although he had recovered from Epstein-Barr syndrome after five years, he would spend much of the early 1990s living in poverty, mostly in cheap motels. Gigs had dried up because of his health problems. He paid his rent by pawning guitars and reselling rare records he found in thrift stores.