This gives you what should be an easy means to get rid of what appears to be a less than ideal tenant.

I'm also concerned about the liability that I might be exposed to here by allowing what appears to be a business to operate out of my rental.

Hi Josh, it doesn't appear that the Broker representing the seller is at fault here. 

. -- appears to have some properties that would cash flow well, but may be limited on long-term appreciation.I'm looking to stick to market-rate properties.  

As indicated the correlation of LCOL cities having high crime rates and HCOL cities having low crime rates appears to not be strong.Ca large cities have lower violent crime rates than many cities in other states that are a similar size. 

I’ve been exploring MF properties because complexes in the $1M to $1.5M range appear to generate better NOI.

Your solutions are contradictory and are equivalent to clicking your heels three times to solve your problems.

One option I'm considering is adding the equivalent of a camelback, or second story over one side of the home, adding ~900-1000sqft and 2 or 3 bedrooms. 

When contract is about to reach 5 years, i plan to make some upgrades on the property and ask for re-finance, hopefully pull out some equity and get a fixed rate mortgage.Let me recommend a backup with emergency fund (equivalent to 24 months operating costs).

I’m trying to make sure my business appears legitimate and trustworthy to local sellers, but I also want to avoid violating Google’s guidelines and risk having the account suspended.Would love to hear from anyone who’s faced this issue or has creative ideas for solving it!