Not saying it’s a scam, but be careful.

I could care less if someone smokes marijuana but worried it might impact other tenants & future renters.What are my options, if any?

Just be careful what areas, cash flow isn't everything.

Fannie/Freddie do NOT care if you transfer your property to your LLC. 

People care more about the appearance of kitchen appliances because they are in a public portion of the house as opposed to washer/dryers which visitors rarely see. 4.

If you don’t care about maximizing loan amount then you could start whenever.

And possibly even more money back if you did some of the work yourselves.So now you have a new home that you're living in that has probably 25% equity in it, you have a cash flowing seller financed property with no maintenance because you've sold it on seller financing and they're going to be taken care of the property because it is their property but yet you still benefit from cash flow because you are the bank.

My guess is that the institutional big banks would have a problem with it, while the smaller local banks and non-bank lenders probably wouldn't care as much. 

With small multi-family, be careful with the neighborhoods in Indy as it is very street by street in some areas.

You are taking over for someone who didn't care at all about the rules and you want the city to just be like, "yeah, this is fine"?