In my mind, this will make it difficult for me to make a case of keeping their initial deposit if the unit is trashed.My thoughts were to slightly increase rents 3% - 5% and have them complete a conditions report prior to renewing a 1-year lease.

(But without a PML to trust us, with no history, it's rather difficult.)

But the idea of dealing with difficult tenants is at or near the top of the list of why many investors do not want to be landlords.

@Lindsay Op de Coul very, very difficult if no other 2-families exist on the block, but no extra regulations on the process like 2 to 3.

It is increasingly more difficult for landlords to do anything at all.

That makes it very difficult to cash flow day one, but also depends on value add opportunities and the financials of each specific investment.

Sexy yes, but difficult to finance, difficult to resale, difficult to find a place to put them likely.If you want to get into bigger multifamily I would attend one of the syndication courses...lots of good resources there. 

Learning a difficult lesson right now and hoping it works in my favor.

As an agent, I can tell you that homes on busy streets or frontage roads are more difficult to sell. 

My work & family schedule makes it difficult to attend a Thursday night meetup so I haven't been able to attend much.