It's really more relevant to the discussion if we decide to move out of state permanently, then we'll be renting it and actually at the 5 rental unit mark which would hit us with rent control rules.

Is paint vapor permeability a concern? 

It just makes financial sense to do so.If you know that you have to get a commercial loan and put 20-30% down, depending on the lender, you and the property, then why is their a big concern of you living in the property or not? 

I was just curious if BP is concerned with such activity or would they continue to allow this so they can receive the monthly payments from these snakes.

You have a valid concern about not wanting to be "surprised" by work, the amount and the bill.

I'm not particularly concerned with the ability to rent it out, or would be an easy rental to fill as one of the units was recently remodeled but never rented.   

Two areas where I have additional concerns include when a tenant may have more resources than a landlord.... 

What about other tenants with health concerns?

New development once finished if you are all in at a 9 cap you can then either sell for a 6 cap or just hold the high cash flow with permanent debt and wait for the next cycle to sell.  

They can create a vehicle to help you with your tax concerns and place the land trust in it which will help you with your probate concerns.