This warrants a discussion with your CPA to understand the tax implications.

I dont know enough about taxes with seller financing to know if her concern is warranted though.

If you quit claimed it instead of a warrantable deed, they will attack the chain of title.

Having them all on one lease also sets the expectation that they are all collectively responsible for the entire rent amount.As you state, your attorney says you have a leg to stand on, so I would absolutely pursue an eviction warrant for non-payment on all tenants immediately. 

I am a new investor, and am wondering if a home situated next to someone on the local sex-offender registry is enough of a red-flag to warrant letting this home pass, or is this something that can be accounted for when setting a target selling price? 

And why was it not warrantable?

Do you know if it's "warrantable" or not?

Google "non warrantable condo" and learn what that means.

.- the 50% rule and other rules of thumbs are just rules of thumbs so you can quickly scroll through a list of 50 properties and figure out if the subject property warrants further investigation.

I would much rather have tenant A stay and get rid of B, but B's lease doesn't end until June and they haven't done anything to warrant getting them out early since we had a chat with them about the importance of being civil to their neighbors and abiding by the quiet policy (11pm to 8 am) in the lease.