– I’m exploring whether I can remove the SRO designation and replace it with Artist Dwellings, but I’m unsure of the legal requirements or how this conversion works.If anyone has clarity on the definition of Artist Dwellings or proven strategies for making this type of conversion, I would greatly appreciate your input.Thanks in advance for any insights!

If you had been using a good agent, first thing they'd look at is if it's actually a legal multifamily.Certainly sucks.

HouseMax agreed that I am owed the full $14k, but they informed me that the "investor" and loan servicer (FCI) are refusing to refund the amount.I'm unsure who should be held accountable or what my legal rights are in this situation.

If the tenant wrote you that they were vacating and they did, then you have legal possession.  

Get as much understanding and disclosure as possible on the closing fees and escrows that will show up on the settlement statement - including stuff like prepaid interest ("stub interest"), tand and insurance escrow holdbacks, etc - biggest pitfalls we've seen are people not 1000% clear and aware of these things then getting very negatively surprised at the day of signing 

This helps avoid our clients/real estate investors a lot of legal issues. 

What are we legally required to prorate/deduct in rent considering it is their only shower and will not have one for 3 days?

There are only two legal classes of rental STR are those less than 30 days, and LTR are those longer than 30 days.

Of course, you might want to consider the possibility that there is a real legal reason why they don't want anything to do with the problem, like they didn't actually have the right to give you a deed.

Pref Rents are below "legal max" and can potentially remain there forever (or as long as that tenant exercises their legal right to renewals... allowable increases are based on the Pref rent as well.