This combined with the reported failure to maintain the lawn = unfavorable landlord reference. 

Are squatter laws and insurance laws unfavorable to land owners in the area?

My state only charges $60ish per year for renewal.In addition to hassles and unfavorable financing options, an LLC will cost ya like $800/yr as a CA resident.  

Problem is if you the market conditions do not allow for your original exit timeline and you can't wait and are forced to exit at unfavorable conditions.

It cost a $50-75 but well worth the headache avoidance if I mess it up myself.That said, if you don't like the tenant you can offer a rent increase or other unfavorable terms and hope they don't renew.

S corps have less legal liability protection than an llc also they have unfavorable tax consequences when it comes to refinancing.

The hard money lenders I’ve talked to have said the terms are unfavorable to the borrower when starting out, but as you do more deals the terms get better.

As my home market is unfavorable (Bay Area), this is going to be an out of state venture. 

If they can not show income their DTI will look unfavorable and underwriting will likely not approve them for a loan. 

Some areas such as Los Angeles, have very poor landlord favorable laws and unfavorable housing authority inspections.