The under writing doesn't carry for a 1.25 DSCR which (at the moment) is the golden rule for banks and commercial hard money lenders. 

Quote from @Donna Johnson: Quote from @Judy Foster: we too have tried a small investment in their notes and we got the same letter yesterday. 

Thank for that information as I am having the same problem but the family is still in the property and won't respond to the attorney that send them a lot of letter and phone call.

Please verify with zoning and ask them for a verification letter so you can have approval on hand.

I took title to each in a separate series of my LLC, which is the same as per entity protection as having each in a separate LLC but with the organizational and accounting costs of having a single LLC.In the case of each I carried hazard and liability insurance for the INTERIOR of the condo while the HOA carried insurance for the “common” areas, including structural.This particular condo was on the second floor, with retail and office space directly below.  

I’m considering having a lawyer send them a certified letter, though I know that will still come with a significant fee, which is still preferable to full service.

Check county recordsUse online search tools like PropStream, Reonomy, PropertyShark, etc.Use local GIS mapping tools (ask your county)Search online directories for LLC or TrustTalk to neighborsHire a skip tracerSend a letter to the propertyThere are a lot of options.

You just mitigate it as best you can, carry good STR insurance and roll the dice!

Some like to do owner carry and stack up the passive monthly income etc.

You will truly be raising the clock, as each day will cost you very significant money.  12% interest on $250k is $2500/mo, or about $80 per day in interest, not including your other carrying costs (utilities, property taxes, insurance, HOA).