I'm not the fair housing landlord expert but I'd probably steer away from referring to it as "veteran housing"Either way I can relate to your situation a little because I also own a house that is shared by multiple people.

I store some funds in a HYSA as well as lower risk investments.

Again, working on networking to grow my leads into more lucrative deals.I would say that my current situation is "working" although there is a lot of room to grow. 

I’ve seen situations like this before, and keeping control of the contracts has always been the better play.

Hey @Carolina S.Thanks for bringing up such a nuanced situation.. these kinds of decisions can get pretty overwhelming with all the moving parts.

I specialize in 1031 exchange, investments, and creative rental strategy so I can confidently and deeply analyze your situation.

Simply be a calm stand off landlord who is expecting his tenants to honor the lease - Not you accommodate their personal situation.

There is some additional information that wasn't mentioned in your post above which sheds a different light on the situation.  1.

Is there a funky property tax issue that arises with the collateral that is a local municipality error and can lender quickly analyze the situation, assess and articulate the risk and allow draws to carry on or will they make the life of the borrower miserable?

We have dealt with these situations many times.