There was no sign that the machine had been tampered with or jimmied open... and if it were, why wouldn't they have taken from both machines?  

No way I would pay for anything like that.

I'm assuming that this situation wouldn't pass inspection, but one could argue that all the spaces the guests have access to (i.e. bedroom, bathroom) are safe and habitable + the guests wouldn't be exposed to the kitchen.Also, do the city inspectors inspect other parts of the home the guests won't access (i.e. inspectors check the basement for water infiltration even though no guests would ever be living or even going down there). 

No need for tax returns, Verification of Employment, or income.

I did number 2 with no regrets.

It's no wonder they ditched the master lease structure - easy to see now how they were losing money on it. 

@Hector Haro there's no helping someone who pinches pennies while losing dollars.

Make sure there are no Federal Pacific electrical panels. 

Yes and no.

Needless to say this is no fun.