The timing does suck because this issue came out of nowhere at the end of their lease.

Should I be concerned the bank may have issues with this? 

For example, ask about typical costs for HVAC repairs, plumbing issues, or roof work.- Use Historical Data: If the seller has accurate financials, their expense data can be invaluable.

There was two issues:1.

The Yale Law Journal article, "Zoned Out: How Zoning Law Undermines Family Law’s Functional Turn," highlights this issue, noting that while family law has evolved to recognize diverse family structures, zoning laws have lagged behind, potentially hindering innovative housing solutions like co-living.Challenges for Co-Living InvestorsFor real estate investors interested in co-living, these restrictive definitions can lead to:Legal Barriers: Difficulty obtaining permits or approvals for co-living spaces due to non-compliance with traditional family definitions in zoning codes.Operational Challenges: Potential fines or legal disputes arising from housing arrangements that don't conform to local zoning definitions of a household.Market Limitations: Reduced ability to meet the growing demand for affordable, shared housing solutions.Advocacy for ReformThe Bloomberg article, "Why Are Zoning Laws Defining What Constitutes a Family?"

However, anything that impacts functionality like plumbing, HVAC, or safety issues should be handled before listing to avoid turning off potential renters/buyers.If you’re re planning to lease it, tenants will expect everything to be move-in ready before signing.

Whether we agree with these items or not, the following are inflationary government policies: stimulus, student debt relief, tariffs, increased child tax credits, limited immigration, and big government deficit spending.

I started to notice some issues early on when I tried to get some new tenants screened and signed up. 

It is certainly beneficial to have someone local that you can call on for these emergency issues but don't see it necessary to have a full time PM in my opinion.

The issues I'm seeing have to do with how the new leases were worded regarding the security deposit and who signed the leases.