Not only was he living there with the previous tenant's permission, he was living their with your knowledge!

You would need to analyze what type of tenant base is in the other properties and their capabilities to qualify for your project.Sometimes owners like to push the bad tenants onto other building owners.

Hopefully I’ll be able to push some value back your way so feel free to reach out with any of your mortgage questions.

Tax should be a wash.

You had a ton of former home owners becoming renters, and that pushed up the demand for rentals almoat everywhere.I tend to get strong rent growth in general as I specifically target locations with strong rent growth.I have however had rents go down in my far far outlying properties from DC.

There was some push back from the appraiser, who wanted to disagree with the Head of Planning and Zoning about plats and zoning issues.

is there any room to push it up a bit? 

I agree with @Thomas S. but based on what you said about the property, I would be surprised if this is a financeable/refinanceable property.And probably most importantly, if that PM decides to wash their hands of the property, what's the backup plan?

Just out of curiosity was he one of the lower bids?

That pushes me to do something every day to help me reach my end goals so that I don't wind up saying "I wish I would have done that" or something to that effect.