@Matt N.Agree with @Steve Babiak and @Paulette Midgette that you should try to find out if there was a valid landlord-tenant relationship in the past. 

Let's say I had a valid LLC, (which I don't know if my scenario would be considered or not) I thought that (in GA anyway), the only thing personal creditors could obtain is a charging order against debtors share if is any distributions were made??...

This is valid as long as it leads to action.  

Valid point.

Hence, the restrictions (valid IMO) in place (always paying mortgage insurance) will not be optimal if you make an above-average salary. 

By day I work in the oil and gas sector as an accountant, but I'm looking to increase my knowledge related to real estate and hopefully invest in some buy and hold multi-family units for some additional long-term cash flow.

Finally, when tenants had gas company out to turn on service, they couldn’t do so, as there was a leak.

I don't know how Bismark got on there I have flown my plane in there a few times on gas stops not sure on that one.. other than maybe economics.Any way these are always fun to have those defend their home turf.. there is good in and bad in all no place is perfect..

Considering they still own the property AND still have tenants, are they not violating the law by not having a valid CO?

An appraisal has an effective date, usually the date of inspection, and it is valid for that effective date only.