If one location goes bad, flooded with poor drainage, fire outbreak, riots, weather related destruction etc, the other property is protected. 

Otherwise, it seems like a loop hole to avoid licensure, insurance, cap gains, etc...which feels deceptive.Am I wrong here?

The tenant below sent me pictures of a hole in her ceiling and a torn spot on the side wall  asking what would cause this.

Fill gaps, cracks or holes and flatten out any bumps, they will show thru.

The tenant below sent me pictures of a hole in her ceiling and a torn spot on the side wall  asking what would cause this.

Their money has been stolen from both them and you, and making it right is going to have to involve both of you suffering here or the guilty to be found and made to make good.I would explain to the tenant that you're in the hole for two months rent, you realize this is not their fault, but it's not your fault either.

If they are not responding they might not know how to dig out of a perceived hole with the landlord.If their business is no longer viable then maybe trying to get a payment for settlement in full.When tenants mom and pop try to go out in retail centers the goal is to try to collect enough to cover attorney fees for an (offer in compromise).If it was flex space they likely had little money.

The town has to fail the tank when there are any holes that could have had leakage and when they remove and scrape the tank sometimes they make pinholes when doing it.

I did that with the one I bought and the seller had to replace the entire system as the drainage field was full of roots. 

--> Crowd Pleasing Standout Outdoor Amenities🏀 Sports Court - Pickleball & Basketball⛳️ Putting Green🔥 Fire Pits🔹 Hot Tub👨‍👩‍👧‍👦 Multiple Seating Areas🏓 Corn Hole & Ping Pong💧 Heated Pool🍔 Built-in Grill🖼️ Outdoor Mural--> Crowd Pleasing Indoor Amenities & Design🔹 Blockbuster Movie Themed Bedrooms & Design Carried Throughout the House🔹 Converted Garage Space Into a Pool Table Game Room🔹 Poker Room🔹 Themed MuralKey Takeaways to Drive Revenue for Your STR🔸Know Your Guest or Avatar and Design for That: Don't be afraid to go all-in on a theme that resonates with your target audience.