My sample size and knowledge is limited, so I hope some local Jackson investors jump in with their advice.

He was also featured on the local news station for his innovative work.The tenant is of course taking no responsibility for any of his actions or the damage, and he mainly just throws out empty and somewhat comical threats about a team of lawyers on standby, accusations of insurance fraud, and leaving bad reviews for the property manager.

I think that most of the deals that pencil this way are going to be fought over by the local investors. 

OP that’s a local and propertySpecific question.Talk with your zoning group.  

You’ll want to check out the PA Code's Chapter 2800 for the standards around licensing, safety, and staffing requirements, and the Assisted Living Residence Regulatory Compliance Guide can provide extra insight.We actually have a local team here in Allentown that has worked on several of these conversions, so if you'd like some guidance or just want to chat through the process, feel free to reach out.

So it isn't a complete waste, you would simply need to follow the strict reading of the law with no private clauses for consideration...I'm not sure how that plays out since technically if the lease is void, so is the tenancy meaning you could terminate anytime and not wait for the original lease expiration...I'm sure that's covered somewhere, but again I'd ask my local atty what to do given this is such a locally specific issue. 

I would suggest looking into local groups as well, there are Real Estate Investor Associations in nearly every metro in the US, so I would join one if you can.

I, nor any other agent in our 100% locally owned and operated brokerage pass that fee on to clients, accept on very small sales where the commission to us is going to be too little to absorb that $250.

Check with your local boots-on-the-ground team to learn about how that particular HOA operates.

If there are local meet-ups or if there are people who are willing to connect, I'd like to hear about that, too.