Worst case, you just cover it yourself and keep good neighbor relations.

If you treat the renter (resident) well, provide a well-kept home that you service regularly, and stay on top of any maintenance issues, a resident will likely remain in the house for many years. 

I work with a lot of other real estate related businesses and closing teams that refer business to us. 

You may run into issues with re-tenanting and it may take longer than you expect or cost more.  

The inspection showed more issues than we expected but the seller wasn't willing to negotiate so we cancelled in the due diligence period.

As for the third target market, Sacramento is close to you, it's a state capitol, relatively inexpensive, two major universities, great local culture...

After that, if issue is addressed but ground floor tenants keep complaining - remind them that common noises are expected when living in an apartment. 

The issue always boils down to equity.

Land Use Codes and Building FeasibilityExample 1: Property Land Use CodesActivity Code: 4000 (Social, institutional, or infrastructure-related)Function Code: 1000 (Residence or accommodation)Ownership Code: 4200 (State government)Example: Regrid Property Example 1Example 2: Zoning DetailsZoning Code: T3Zoning Description: Sub Urban ZoneZoning Type: ResidentialZoning Subtype: Single FamilyOwnership Code: 1500 (Businesses and commercial entities)Example: Regrid Property Example 2Based on these land use and zoning codes, can I build a house on either of these parcels?

However, in this situation, it appears to be a pattern rather than a one-time issue.