Fast decision-making played a crucial role in this successful deal.

They make things way too difficult compared to a simpler, DSCR solution.The type of lender also plays a large role here. 

4) Due to all of the above, high chance they start playing games with other tenants, leading to bigger problems.5) What happens if you have to part ways?

I'd look at when the next unit lease expires and you can either...Delay closing until it's expired and vacantGive them another offer that's less enticing to not deliver the unit vacantWhen it has to do with financing the playing field is pretty level, every buyer will be able to get more competitive with a vacant unit

Remote ownership will be my primary play as I want to keep living in SoCal. 

Ultimately, location and demand will play a big role in how it performs.

They got in the game when rates were low and it was easy to find cashflow plays. 

If you want to attempt to rep yourself, you have to play the game too.

I would play along and let the neighbor know that you are sorry they need to sell their home for these health reasons and offer to buy it for half what its worth.

They play this game because the guy has a criminal record so the woman applies for the apartment alone.