Cons: bad tenant means you will lose sleep until tenant is evicted or issue resolved.

And there probably will be headaches caused to by tenants and toilets, but your mindset and the wealth of resources here on BP can help you resolve and get past it, if you really want to.When I was in school for my Master's, I was working 60-hour weeks doing IT consulting, planning for a wedding, and running a youth group and choir.  

Those aren't always compatible, depending on what style of house hacking you want to do.Don't mean to stereotype, but at your age -- hell, at my age of 40 -- most people aren't excited about taking roommates.

If they fail to resolve it follow through with the state regulators.

I just thought having two separate HELOCs would be the easiest way to resolve conflicts between my sister and I. 

Resolve to do one thing every day that you fear.

Oh ya, the PM didn't even notice it...So beyond the obvious firing of the PM, what can we do to resolve both the issues with the tenant and the poor PM?

Researching the city records I see the property owner in 2004 had some open permits to add AC to the house but the work was not to code so the permit inspection failed on parts of the uograde and never resolved.  

Timing will be everything seeing as you need to resolve the 1031.

Vetting guests, marketing, lease ups, turnovers, managing cleaners and trades, resolving guest disputes, handling deposites, payments and refunds.