I'm sorry to hear about this frustrating situation ☹️The question of suing really comes down to liability -- who is liable for the failure to know about the termites Certainly the seller may have known, and if an attorney can prove that they DID know and they did not disclose that, it would be a winnable suit.

I have 2 in Calgary one in Killarney and one in Glenbrook, the Glenbrook house is legally suited and have had it for 3 years.

If you let this tenant back out without imposing the penalties outlined in the contract and those outlined in contract law, you open yourself to a discrimination suit down the road if you do hold someone else accountable.

There are also quite a number of these SFHs with finished basement mother-in-law suites so jumping on one of those is not a bad idea either.

If you and your partner are going to run the bakery, I'm assuming that you plan to become the tenant and lease the retail suite to yourselves while renting out the apartments to third parties.

I saw JPMorgan tightened their lending standards and it made me wonder if others followed suit. 

So, based on the limited information you have provided, a Checkbook IRA would likely best suit your situation.A Roth self-directed IRA will still receive income from investments tax-free, just as a Roth IRA in the stock market does. 

I wonder which BP forum this question is best suited for?

The type of self-directed IRA that will best suit your situation and goals will drive the process of identifying the right firm to work with.A self-directed IRA custodian is a processing entity.

If you cannot, then buy a larger Single Family home, live in it what your partner, and turn it into a duplex by building an In-Law suite into it.