My real estate agent in the area went by and took some video and described it as "creepy and old," the tenants had smoked so the smell was awful, and the neighborhood was "hood" - she didn't really feel safe there just taking a look. 

The owner ended up needing to put In hard wired smoke alarms and new custom egress windows (totalled around $6,500.

@Matt Gilroy Tell him your doing a random check to look at smoke detectors, check furnance, and general inspection of property for your records.

After finding out about subletting, a thrashed back yard, domestic violence, broken doors, smashed windows, smoking, melted vinyl on the new kitchen floor, a leaking toilet, a destroyed lawn and on and on....

I replace old smoke detectors with the 10 year lithium battery ones that are built in. 

So that's all smoke and mirrors used car scare tactics they are telling you.. they may put a mortgage on the house but its a transfer of the LLC they are not foreclosing. you have just agreed to transfer your interest to and they take over ownership of their own mortgage..

The one side was heavily smoked in, and they share hvac ducts.

We found a device for smoking pot. 

But with our last house the elderly lady next door called about every week to complain about something, from the contractors smoking outside to tree limbs she thought we should clean up. 

I went to the house to fix the AC, and saw the guy smoking and dogs were around.