@Kevin Connauton most PMCs won't touch this type of renting due to all the additional headaches and liability.We second contacting PadSplit.

Additionally, the transition process itself could create uncertainty in the market, making long-term planning more difficult.Opportunities for Private Lenders & Alternative FinancingWhile some investors may face challenges, privatization could create opportunities for private lenders and non-bank financing options.

Additionally you can always write in what was done to correct it and explain that since then you no longer had issues. 

Just one additional option.  

Very valuable insights, Jay.

There are also additional costs of operating and maintaining an LLC, like separate bank accounts, annual report filings, tax filings, etc.2.

Additionally I would add a benefit for you is that you're in great area to be able to invest locally and can invest in your own back yard as they say.

Cross-Collateralization – A lender may finance the full $160,000 purchase by using your existing properties as additional security, lowering their risk and possibly reducing your down payment. 5.

However, i'll likely be looking at additional ways down the road to be even more secure for a backup what if scenario.  

It sounds like you navigated the challenges well and gained valuable lessons for your next venture.