Pricing in DFW probably means you wont live rent free,and will have to pay your fair share of normal rent, but you also get 3 more people contributing to your loan paydown and you get to keep the appreciation.Buy hey...maybe I'm wrong....go talk to a local bank or credit union near where you live and get a term sheet from them for financing. 

Pay the tenant to comply with the lease?

Quote from @Jordan Townes: so why are you people that already sunk 40k into this not paying a little more a getting a  lawyer? 

I cannot sell a house with broken equipment, and I cannot pay someone for breaking what they were suppose to install. 

Is it simply another word for peer pressure?

And of course simply have it demo-ed.

If you rent it for 2 years and then sell it, you shouldn't need to pay taxes on the capital gains.

If I had been tracking the assets via accounting, I would simply make a journal entry showing the LLC's assets and liabilities going to zero and transferring them to the Holding LLC or the LLC Members.

Talk to any business owner of the heavy, hard manual labor jobs and they will all tell you the same thing - it's almost impossible to get Americans to work these jobs at any salary, much less one that a company can afford to pay.

If the damage is minor, again I think the tenant can simply claim the quality of the appliance was poor and they have the door-seal quality issue to further back up this claim.