I go over self-dealing and this case in more detail in Chapter 6 of my book. 

Case in point, they are breaking their current lease the signed March 1st to move somewhere where the apartment doesn't smell like smoke.

Except this post is about NH, and that's not the case in New Hampshire, @Tom Gimer  @Jim Froehlich  It's a race to the registry after auction.  

I'm trying to better understand what is special about this situation that could possibly create an equity position and then wouldn't that be the case in any and all other owner-roommate or owner-renter situations?

Is that not the case in Coffeyville?

@Angela Harding It's no longer good enough to have no peeling paint as the case in all your properties. 

In a case in Ohio, the Federal Court ruled that rental inspections were unconstitutional.

Cats require a high protein diet; their urine can have a significant odor and it is worse with an unneutered male cat that sprays to mark territory.

I called the township and they said they don’t have any permits or anything that is needed, but I can’t believe that is the case in this area.

I have a similar/simpler case in which I like to take out $ 50,000 do a cash-out refi from a 'rental' and use the cash as a down-payment towards a 'primary residence' of $250,000.