Once you reach a certain number of properties your lender will likely want assurance that his investment can not be jeopardized by an unrelated investment.

Lest you think we are taking it easy on one of our own, I can assure that the responses would be the same if there was a landlord on the forums up in arms because an otherwise decent tenant moved out owing $1.00.  

That's beyond their job description, in my opinion, and you may put them in a tempting position to assure you that sure, the property has been a rental for years and the owner says it cash flows great! 

I have been active in KC for around 8 years and I can assure you that taxes have increased very gradually during that time.

If I had a contentious relationship with the tenant, I would only show the place after I was assured this is not just a "tire kicker".

Banks most assuredly do allow for late payments.

Otherwise, it doesn't seem like you sat around and did nothing, knowing that what the situation was.While the legal threat is almost assuredly just that (a threat) You might consider giving some concessions.

Our nightmare tenant also resulted in other tenant complaints, cops being called for noise, parking crazy in the parking lot taking up two spaces, destroyed carpets where they let cigarettes fall and burn on the carpet (and smoking wasn't allowed), her baby daddy moved in almost immediately - it can result in lots of time dealing with complaints and problems and I almost lost good tenants, too, who I had to assure I was getting rid of the nightmare tenants.  

I know what you’re probably thinking, “yeah I didn’t want to buy garbage” I assure you neither do I.

My experience is tenant rarely take responsibility for maintenance of mechanical systems and it is more cost effective for me to assure the maintenance is performed than pay to cost of deferred maintenance.