Seems like you should not have to but showing they broke house rules leading to damage may help. 

I have a friend here who has about 140 houses right now, who I was discussing return on equity with.

So the seller cannot go get another loan for a car, house, apartment, etc. so it damages their credit by stretching them too thin.Am I missing something? 

"Fall in love with people, not with houses".Did your agent do a "cash out analysis" to show how much winds up in your pocket after the sale expenses?

It could be some sort of skill set for renovations, design for furnished rentals, specific market knowledge, owner occupied loan products for a house hack, etc. 

I guess the only thing giving me hesitation is that it looks like housing prices are at all time highs even after adjusting for inflation:https://fred.stlouisfed.org/se...Housing affordability is worse today than it was at the bubble peak in 2006 if you believe Case Shiller data. 

I'm really excited about the potential of investing in residential multifamily properties with my dad, who's willing to contribute the initial funds.We're currently working on getting our financial house in order, paying off debt, and building a solid nest egg.

There is a 1 bed efficiency guest house on the same lot that we have just listed as an STR.

If in the future they try to buy a house, the lender may require it to be paid but that's a long shot. 

What do you want to be , a house flipper , or a landlord ?