I'd look at when the next unit lease expires and you can either...Delay closing until it's expired and vacantGive them another offer that's less enticing to not deliver the unit vacantWhen it has to do with financing the playing field is pretty level, every buyer will be able to get more competitive with a vacant unit

Remote ownership will be my primary play as I want to keep living in SoCal. 

Ask them if they know of anyone who is looking for an opportunity.Building trust is done through building a brand, and becoming an authority on the subject matter.

You’re building a brand around education and ownership, so transparency and compliance should be top priorities.

Thats what I would do next and you can really just see what the numbers tell you (and look at different rate/refinance scenarios how it would play out in the next few years)

Fast decision-making played a crucial role in this successful deal.

Ultimately, location and demand will play a big role in how it performs.

They got in the game when rates were low and it was easy to find cashflow plays. 

I would play along and let the neighbor know that you are sorry they need to sell their home for these health reasons and offer to buy it for half what its worth.

If it is worn or stained, yes, put in new carpet.On the other hand, we have had prospective residents tell us that we need to replace this stove or that carpet, and sometimes they are brand new.