The downside is that you pay higher rates and the note will balloon every few years.I have a similar situation where I was re-assembling condos from a failed condo development.

The master lease has less risk from the standpoint that if the property fails to perform you can walk away more easily.  

I come over and look in the crawlspace and a pipe had broken, shooting water across the crawlspace, and the sump pump failed, leaving calf deep ice cold water....The tenant is like, "well you can rent it with an indoor swimming pool".....

Keep in mind, that if you fail to have a EIN/SSN in hand before making the payment to a vendor for whom you are required to file a Form 1099, you are secondarily liable for 28% of the payment as back-up withholding.  

If they don't, then you can deal with them like you would anyone that fails to pay rent.Your description makes it sound as if you are hovering over them too much and they got tired of it.

Your lease should stipulate the minimum requirements of maintaining the home and what happens if they fail.

I think a big fail here is that you do not get the value of the team, the economies of scale, the immediate hyper local knowledge to make your rentals a success in long term play, for cash flow with an eventual exit or reposition.Next, moving on! 

Obviously, most insurance companies would have a conniption about this and I am also having electrical issues due to the failing breakers.Does anyone know if I have any recourse?

Failing to close is a big time waster and you can even loose a real offer due to the "Sales Pending" status.

He failed to disclose that due to the high level of delinquencies the complex was on the verge of going belly-up (this was 2008).