Consider taking a down payment on options and applying some or all of that as additional principal payments over a term (knowing you could sell a few)Options here are almost endless.

You will probably get most or all of your 10k back on that one deal just in commissions and maybe a finders fee if you're lucky.

And damage one would normally withhold some or all of security deposit for (several substantial holes in the plaster from doorknobs or fists, some woodwork in the kitchen completely shredded by the tenants' three cats, among other things).  

I found this from the HUD (if it helps:) https://www.hud.gov/sites/documents/4155-2_4.pdfTypical conditions that would require further inspection or testing byqualified individuals or entities include: infestation – evidence of termites inoperative or inadequate plumbing, heating, or electrical systems structural failure in framing members leaking or worn-out roofscracked masonry or foundation damage, and drainage problems.Sounds to me like everything you listed wrong with the property is what caused the appraiser to give a C5 and the deal cannot proceed as so. 

Depending on the size of their sale and the purchase price of the new asset there may be a way for them to use their 1031 to also fund some or all of the construction of the remaining units.One thing to watch out for though is going to be how you purchase that new property. 

Make sure you ask about selling your own investment properties - some or all of those are split-free.

Jack the interest rate up for a big fat lender credit that'll cover most or all closing costs. 

Also the 17 yo's are not likely to be able to pass your rental application after they turn 18, if your looking at things like Credit score, income Level, References, etc. many times 18 yr. olds are not in good standing in one or all of these areas, although their are exceptions to the rule I suppose. 

This is because taxes are so low and the population is so small, the tax base is inadequate for police to have the resources to actually investigate or prosecute crime.

Not much you can do to enforce at this time........she might also move in her brother, sister, mother or all of them.