It seems like it is coming from a place of good intention, but is not particularly well thought out and opens the door for a lot of serious issues.I fully understand the therapeutic and healing benefits of pets for certain people, but there are already protections in place for service animals as well as emotional support animals that protect this subset of pet owners so I don't really understand why this bill is necessary - seems like it will cause far more harm than good, and again, this is coming from someone that likes pets! 

One of the items required by the bank is either a letter from the seller stating no harmful substance was used on the property.

No harm in confirming.

Well, that completely ignores the fact that you are potentially harming sellers when you put a house under contract and nobody wants it. 

He doesn't like to clean his house and smokes like a chimney but he's not leaving food around, he's not interfering with anyone, he's not damaging the property beyond the surface cosmetic damage that's already been done, and he's not harming himself.

Only being able to get sub-optimal financing will generally harm values more than what you "get" in value from the 5th unit.This is why you don't see a lot of 5-10ish unit properties.

Plus if it's not a rush then no harm in waiting for the right person to return.

She needs to take responsibility for her financial situation and you may be doing more harm than good by incentivizing bad habits. 

No one else here will be harmed by whatever you decide; good or bad.Don't take the decision lightly, but also don't just listen to the negative comments either.

Live in flip can work here but I have seen many DIY "improvements" in Moreno Valley that harm the long term prospects for the home.