It encourages this behavior, increases the odds they will repeat the behavior, increases the odds that another LL will get to experience thus from this tenant, and in the long term increases the chance it will happen to you again. 

@Blake Yarbrough If you can structure the deal where you get the 80% financing with good terms and rate in place and it is a good deal meaning under contract with good terms, purchase price under market value and also being the asset and property manager.

Purchase price: $317,000 Cash invested: $30,000 Short term primary -> long term hold with a 3.25% interest rate.

It shouldn't take a Reatlor too long to do.

House Hack all day long dude!

I think what most borrowers fail to recognize is that real estate is a long play.  

I'm seeking out distressed property on Long Island that could use some rehab.

@Jose N. you can do maintenance with band-aids or replace/upgrade the problem.Often cheaper overall to use band-aids to get as much "life" out of a system.Roofs for example.

There is some nuance there that your accountant can assist with but in terms of asset protection truthfully nothing to be gained either way.

Once that is complete, allow them to work things out as long as you get the keys to rekey if you will (and I would) near/at the end of the month.