Those in earthquake zones who INTENTIONALLY don't have the readily offered coverages for such, ARE THEIVES by NOT insuring with expectation of DEFRAUDING the rest of us to pay for there gamble. 

Each HA uses HUD guidelines but has the ability to modify the process upon HUD approval. 2. many landlords do not fully understand  the ins and ours of the program.

Lenders have different guidelines they follow, some won't want any other real estate but no bank will want all, I promise you that. 

A good approach here might be to present them with a shared cost breakdown and show the direct consequences of disregarding the septic guidelines.

It’s a gamble, but just looking for ideas from more seasoned real estate minds.

Let me know if you have any questions...there are so many nuances when it comes to lending guidelines, getting the best terms, and setting yourself up in the best position possible for properties 2,3,4 and beyond as you build your empire. 

It also tracks who is in what house and all other resident info I might need, and is absolutely vital to our operation.Each of our houses has a live-in manager who, for free rent, ensures all residents are following a strict set of rules and guidelines that is enforced quantitatively with a points system to ensure objectivity and uniformity between managers and houses.  

@Pretty Khare As Ruben and John mentioned above, you can utilize a cost segregation study on your STR property to reduce taxable income (or create a taxable loss) to offset against your W2 income, but you need to ensure you are following the IRS guidelines very carefully.

In my opinion investors buy properties with break even or negative cash flow and hope for large appreciation are taking a gamble.

But be sure to consult with the city for their local guidelines.