Needless to say, if we couldn't resolve this amicably with all parties involved, I would also be serving the 10-day Notice to Comply, to bring the tenant back into compliance with the rental agreement.Don't remove the co-signer unless the tenants can qualify to rent the unit on their own.

You don't have an issue with the roommate... yet... but your tenant does, she's in non-compliance.

Borrow some money from a bank or Credit union and pay it back AHEAD of schedule.You can easily build your credit.Also brick and mortar local and regional banks and credit unions are good places to get mortgages, many have "Portfolio" mortgages available which don't require Fannie and Freddie compliance.

@Devin Marlowe I'd probably walk at this point ... you can always poke at it later.If you are intent on pursuit, you could make it a condition of any offer that all zoning, work order and code compliance issues be resolved prior to Close.Now that you have had this discussion with the City and, I presume, conveyed the information to the Vendor and his agent {hopefully you asked the City to put it in writing - to help you keep the list straight.  

Thanks Sean....I've got a list just to bring it back to decent rental shape, compliance with modern codes, etc.

background checks need to be done and the lease needs to express what you as the landlord would expect from the tenant on your property.research a little bit more and also have your lawyer review the lease for compliance to local laws

You should talk to a real estate attorney or title company that works with investors in your area to ensure you are in compliance with any laws.

This might be a good time to check out a REIT that does the 55plus compliance portfolio. 

Hey Paul,We will get together soon.This month has been crazy.I like personally larger apartment buildings.With duplexes and tri's,and quad's there is a common problem you run into.Usually in a development all the buildings belonged to one person and were sold off over the years to different people.I have found that when different investors each own their buildings the type of tenant they let stay there and how they take care of their buildings vary.This causes a risk to your rent levels,tenant base,and future appreciation.It's better in the city as code enforcement can keep on bad landlords for compliance issues.If you own one development outright you control the buildings,utilities,improvements and roads,etc.On the houses I equate resale to the cost per door.An apartment unit is 1 door and a house is 1 door.You would need to project your exit strategy time line and what you think values would be then.From a cost per door standpoint apartments are generally cheaper for value add deals than houses.Houses you would have to sell each with their own closing unless you did a portfolio sale at a discount whereas the apartment complex would be 1 closing and reselling to 1 buyer.

Assume they are regulated by your state insurance department and that they are in compliance.