For future reference, the agencies will often adjust LTV/DCR by -5% LTV / -.05x DCR for loans involving new agency borrowers with minimal experience / like size AUM / etc. 

If your goal is to grow your LLC, consider arranging all of your properties under an agreement with your LLC to manage them & take all of the legal steps to ensure that the structure is correct. this may involve creating LLCs in the state(s) your LTRs are in to own the property and your PM LLC managing those properties, so that you don't have a concentration of all of your portfolio in one entity.

And don’t pay anyone or sign anything before you get your carrier involved.

What is likely to happen is you try to solve HER problem - just to have it repeat.You really cannot evict one person w/o evicting ALL OCCUPANTS.Know you think you are doing the right thing, but you are NOT.The only way you can/should assist the mother is if she files a police report on the other occupant.If mother is not willing to do this, do NOT get involved!

Should have done more digging up front on everyone involved in the deal, not just the managing GP.

If you can get in with a real estate brokerage that is more involved with investors you will learn a lot more.

I was notified by the Fire dept since they were involved due to risk of human trafficking. 

Those may help craft a plan for how to minimize the pain. 

Would the bank get involved?

There is a ton of trust involved on both sides, but especially when you're the one shelling out the money.