Are they abiding by the lease terms, maintaining the rental, paying rent on time, etc?

The population could decline and we still would not have enough housing but with a steady population we are significantly short housing.  

Rentals are the best for building long term wealth building.

(Q2)Another question I have is that since Steve broke the terms of the lease by affecting the other tenants’ “peaceful and quiet enjoyment of the property”, is he obligated to pay the rest of the rent even though he will be vacating the property before the end of the lease?

Hi Hugo, midterm rental can provide you much more cash flow than traditional long-term rentals.

Prepayment penalties- usually 1-5 year terms.

Thanks for asking.I am fortunate - but to make the story short, I had a GC in place already (they are also my Property Manager) and I've known the owner for over 10 yearsSo far the numbers have been favorable and we are looking forward to wrapping up shortly. 

o Bridge (rehab) or long term (30-year fixed)?

I rented both, furnished them, and listed them on mid-term rental sites like Furnished Finder.

I used to live in the property and are in very good terms with the previous neighbors, and don't want to risk anything given the shady past/current behavior from the tenants.