Large families with kids were routinely flooding the floors. 

I will say that the fact that hiring a PM would murder your numbers does make me a bit uncomfortable.

I feel like having one agent covering both side is definitely uncomfortable situation for buyer and also probably conflict of interest on the agent. 

The IRS has routinely attacked these.  

They will manage the money for the disabled person and pay all routine bills.

Added fees muddy the water and make people uncomfortable.

That may mean doing something that may make you uncomfortable such as calling them directly if you can get a number or knocking on their door, but you can at least start any discussion with "I live in this property and would like to stay there" so as not to sound like some vulture circling like other investors may appear to them.

Yeah, if I have to sign something, that would make me very uncomfortable and the word fraud is scary to me in and of itself.

It either has to come from your own resources or be gifted to you.I suspect it works similarly in your area.That said, there will be folks who will tell you ways to circumvent this requirement ... and it happens routinely, but in the end the lender could pull the plug on you if discovered ... or worse, the words mortgage fraud can come into play as you will likely attest that the downpayment comes from your own resources.

They are not complaining at this point about having to make a mortgage payment and pay rent to me, so perhaps I am more uncomfortable than they are, but how do other landlords deal with this risk, or does it just come with the territory?