I have plenty of funds in my SDIRA and I want to make good use of it -- and flipping would work out very well except for this issue.Flipping inside your SDIRA will definitely be categorized as an active business and should be treated as a taxable event. 

Send them something in writing stating that it was treated and resolved on x date.

If it's a multi and it actually is bedbugs I would treat in self defense.

So my advice would be repair the damage, get it treated, and use the termite warranty as a selling feature. 

This is specifically how FHA treats multi family properties up to 4 units purchased with owner occupied loans.  

If have a S-corp then it will probably be treated as a sale when the property is distributed. 

Hope life is treating you well Mack.

Plus a property manager will never treat your property like you would, but that's really the case with anything.Find a GOOD one like @Mark Ainley and you'll be alright!

But in the end of the day the tenant really is your client, if you are treating your rental like a business as it should be.

Treat him like your lender.