PS the foundation issues are caused by Yazoo clay.. in the newer homes the builder dig out a few feet and then rock up before foundation.. the old homes are just  laying on the existing soil ..

Additionally, they may have good cause eviction protection depending on where in upstate NY. 

Failing to budget correctly for repairs or not accounting for unexpected expenses can cause you to go over budget.

The tenant has caused damage and broken the lease so she is going to vacate in December.

This causes some people to move away softening demand for housing at the same time the locality needs to increase taxes.

It's easy to pontificate about this deal or that deal, but no matter how good a deal looks, it's still scary to wire in a big chunk of your net worth to a property that will most likely cause problems for the first coupe of years while you stabilize it. 

I would conduct an inspection, determine the cause, and make the repair.You shouldn't keep tenants who habitually pay late, but there are various factors to think about and I can't go into all of them.

If you think I should reject the application any guidance on the best way to do so (an not cause rift with PM) would be appreciated.

i’m new to all of this so I’m trying to learn, but would it be possible in your situation to pay somebody to squat in there and basically cause the other person to want to leave?

They may wish to keep their personal name private from the other investors, etc.One potential downside to investing in an LLC (and that I've seen has cause people to change their minds and switch) is that the tax filing deadline is a month earlier for LLCs versus individuals.