I have a degree and post graduate work at Yale, I do not drink or do drugs, BTW, I was simply over qualified for what was available. 

Drugs aren't any worse there than any other south Texas city.

There must be another reason, and it may be the lenders attempts to get around the tax laws.The treatment of the property would not impact the ability, or lack of ability to foreclose in the event of a default.

Maybe the original owner didn't mind having a felony drug dealer live at the property but you might.

At the very least, this tenant is possibly on drugs and I think she's sort of a "risk" for trashing her own house before she leaves if she's unhappy about being forced out. 

Now one of them told us that he has a misdemeanor in 2013 for drug possession.  

Lights on, tv on, heat or a.c. on.The other half of the time I get a call from someone who just came into town or I give them a drug screen in the morning to get into the refinery. 

By assigning the option you can still sell it down the road without having to hold it for a year to get capital gains vs income tax treatment.

All classes feels the cards are stacked against them...some just choose to fold their hand and others choose to shuffle and re-deal.Taxes are not the cause for people staying in the middle class...having unfavorable tax treatment, or any personal or financial challenge, is the effect of people's decisions.  

I am concerned because both neighbors mentioned "there were lots of drugs done in there" when I visited the property.