Your question is a bit unclear.Please don't misunderstand; I'm not at all suggesting you're being disingenuous and of course, I don't know how you structure your deals.

@Royseve Zamarripa Sorry for the misunderstanding.  

Ok, all kidding aside, this sounds like it could easily just be a misunderstanding of the loan terms, or it could be that the loan is totally legit and you will see 100% of the money, but the lender just thinks they can get one over on you and make a few extra bucks on fees, and then it could also be a total 'take your money and disappear' scam.

Outcome: The drug dealers were thrilled with the gift cards and agreed that it was a misunderstanding.

Please don't misunderstand me it a great place to live.

An LLC has an Operating Agreement, a TIC has a TIC Agreement, if you have both the terms need to be identical on common topics, like income distribution, so you avoid misunderstandings. 

I think there may be a misunderstanding here on fees.   

@Kevin Kennerly You're misunderstanding something here.....PMI underwriters don't concern themselves withproperty conditions, the lender's underwriter does, as it has to meet Fannie/Freddie guidelines.  

It could be a simple misunderstanding. 

Maybe I'm misunderstanding something but my final thought is to lose the property manager, 4 out of 16 homes occupied and 3 of those allowed to deteriorate?