My two cents summarize is that you can make some nice cash, especially for the northeast, but at the same time the units will be management intensive and given the landlord / tenant laws of MA, one troublesome tenant could wipe out many month's / year(s) of profit.

I am playing devil's advocate and think this coverage denial can easily be fought in court. 

You'll have to deal with the FIRPTA tax withholding, but that would only come into play when you sell the property. 

Is this where a 1031 comes into play?

If you have not then going from never doing this to managing a more management-intensive strategy like co-living may not be a good idea.

I am going to try to have the current tenant this is occurring to take me to their bank so I can get the bank statements directly and be sure I am not being played again.

It was a smart play made possible by an area real estate broker who suggested it.

The vast majority of Madison, Morgan, and limestone counties should be prime appreciation plays over the next few years.

It’s a very regional play - or appears to me.

If it’s so bad, instead of playing detective or code officer, why not move?