Here's the drama part, while married her husband somehow went behind her back and pulled out a large HELOC.

We service everything ourselves (because we're cheap right now--please don't judge us too harshly).

That is a harsh reality every wholesaler has to face sooner or later..

And if that doesn't work, we start quoting the lease in a factual, bullet point kind of way with no drama or finger pointing and always ask them to stop in to talk about it.   

Neither one of you are going to want to have to explain to your future spouses or significant others that you still own a house with your exes (and deal with that drama).

They understand that there's value in what they provide, which is steady, documented income, minimal turnover, steady payment, quality references, no drama, and peace of mind.

The larger unit will have higher maintenance/cap ex even with coastal environments being harsh on some items.I suspect your expense estimates are far too low especially if you kept the BP calculator default percentages.  

Of course this would be harsh on the current owner, but this process is bad enough that it discourages participation which would result in lower prices (if there were not inside buyers).BTW drones are handy on virtually all properties. 

He was Mr Drama.

There is understandably a lot of drama between them that we have had the opportunity to hear about, but we are not interested in that.