Can any one who has ever been through a similar situation tell me what steps you took to solve such a dilemma?

She was very caught up in her parent's health and just kept hoping she could move out sooner that she had time to pull it together.In the end people are humans, and some grace is needed. 

This is also a health and safety issue meaning you are required to provide hot water to the units by law. 

This also prevents you from getting bad deals under contract, and should solve your ethical dilemma. 

I was hoping someone could guide me in the right direction with my dilemma. 

This is all assuming the buyers found a real health issue and not a made up bargaining chip.

A lot of us have that same dilemma.  

I don't see any reason why the Landlord should be responsible for health practices of their tenants, but you need to decide for yourself how you want to operate your business.Check out Stessa.

This is creating a lot of opportunity for us by putting skilled workers into the labor force who otherwise would have never left their cushy state jobs.As for other perks....We aren't at the level of being able to offer health insurance unfortunately.   

You also have to research the health of the HOA as the special assessments can kill your cash flow pretty quickly.