Hey @Ryan Brown - if you've provided the splits and tenants have ability to control their own temperature, then I can't imagine why you would be further responsible for the tenants unit temperatures. 

Controlling payments can help, but its really difficult to catch back up if the work wasn't completed correctly in the first place. 

., I have never considered doing a rehab where I didn't control the scope of work to be done.

It's harder to get started right now and people are unwilling to control there personal finances. 

However, there may be issues to overcome as the property your building will be owned by an entity controlled by the 1031 intermediary.

In Ohio there's no rent control, and in Toledo it's pretty simple: you don't pay your rent, you don't stay in your property.

Your state laws control, but the loss value to the materials will be based on fair market value.

Assuming you have a lender who fits what you need, and the end of this call you should know whether your deal is financeable through them, pending of course appraisal or whatever else is outside of your control.  

If you own the asset, don't own the asset, or don't even control the asset, you can still play in this space.

If you can't keep control of your personal finances, you are highly unlikely to succeed in real estate investing.