You can file a complaint with the CFPB. 

So I guess thats legal.  

The tenants in the 3 bedroom rental aren't in a protected class but I do not want to get in any kind of legal bind. 

Time is money and I prefer spending my time with my fam and friends instead of problem tenants and legal cases. 

Those that choose and can rebuild, will most likely not build back to the extent or scale due to feasibility or costs or unanticipated new zoning, infrastructure, insurance and legal variables.

Even so, they were able to help at times when I had technical questions about the legal process.

If you need financial help, ask under the "Finance, Tax, and Legal" forum.

The primary risks at this point would be       1) to your lender, the risk of a margin call.       2) To you; underestimating the true cost of a project and cost overruns      3) To you; legal risk of securities regulations if you partner looses money. 

Trying to pay the least amount of taxes legally possible. 

Legal Implications & Ramifications : As an example; the iconic PCH homes in Malibu and many in the upper foothills might not permitted to build back, certainly not to the same extent or materials.