I am running a VRBO not an Air Bead and Breakfast.

Or inexpensive upgrades can be added to make the units stand out in the rental market.

That value should be added to the cost of the deal when doing your expected profit/loss calculations.Of course, estimating a bad day and the probability it will occur is a guessing game on your part. 

It's unlikely the PM knew.Once the PM does know, he should act by notifying the tenant it is a violation of the lease and require the additional adult to apply and be added to the lease.

We see the occasional block foundation but I don't think I've ever seen an entire home made from cement block.I know one "feature" of block foundations around here is that building codes won't allow a 2nd story to be added to a single story with a block foundation.That could have something to do with what I see here as it's pretty hard to find a ranch. 

If they can't, you may want to start looking for another property manager.I suspect they want to be added to your insurance policy as "additional insured" or "additional interest".

The new tenant can be added with a hand-written note on the existing lease:"On November 1, 2018, I authorized John Smith to be added to the lease.

Nothing yet, but I will be adding apartments to the vacant lots in the future.

extensive make ready costs" may potentially need to be added to basis.

At present, I am approximately 40 K out of pocket because of the mortgage interest I am paying. as Mary stated, if a pay down all mortgages, my net gain will be 30k but with a 10k tax payment.Bottom line, assuming I have already met all my real estate goals, I would be adding 30k a year to my passive income with no additional risk if I pay down the debt.