Negotiate with them calmly and with respect.Tell them you are sorry that you did not follow standard procedures for approval of work to be done and will be careful not to do it in the future.Offer to pay a one time penalty of say $1,000 dollars (which is way,way cheaper than the potential $5k to 10k you will shell out to a lawyer and court fees.Show some remorse and ask what you can do to demonstrate good faith and they might let you skate by without having to destroy the work you have already done.

You should also hire a consultant to help market your track record, develop a fund model, handle investor relations, waterfall calculations, etc.

Hi @Harmony MatsonIf you're interested in learning more about real estate, I have a pdf that goes in depth about the laws, mortgages, important time value metric, development, commercial, single family, waterfall topics as well as reits and so much more. 

Be calm when dealing with the bureaucratic red tape of the housing authority; make a phone call to figure out the next step when you are going through the process, when you get sent to voicemail, leave a message; when you don't hear a reply a day later, send an email; when you don't get a reply from your email two days later, drive to the Section 8 office and politely figure out what the next steps are.

But it did get me thinking, what kinds of things should I look out for when the market calms down?  

My wife, always the calm collected one said hey at least we still get the house.

I would advise your friend approach this in a clear, calm, and polite manner.

Followed by one firetruck--two firetrucks--**Imagine the nosey landlord peaking through his or her blinds (thats me)** I calmly watch them as they enter unit #1.

She wants to walk away without paying rent owed and a waterfall dating back to 2014 to present.

You must stay calm and make them look like the bad guy.