You will then have a few options with that rent money....you can put it into principal or you can start saving it to purchase yet another property.

positive cash flowing $359.42 tenant has been late every month at a $75.00 late so total cash flow has been $434.42 Lessons learned?

I already left a message to the recruiter for his new position that will start on the second week of March.  

We have been discussing options on how to move forward.

., seller financing, lease options, etc.)?

Certain suburbs don't have many options for multifamily, so you might have to open your search to other locations.

I would probably have to return the down payment and option money to the end buyer, and he is probably going to sue me.

This is the 2 units + 2 ADUs scenario.I am worried Scenario A might push future financing option into commercial real estate only, which will limit my cashout refi options and the future buyer pool.From a lending perspective, since a "Land Use Restriction" is required to be recorded on the Deed to limit rentals to be longer than 30 days, the property thus will not be considered a true "5 unit commercial property" and my worries in Scenario A will not come to pass, right?

If not, do I have any other options at 20% down? 

@Linda Vu Nguyen in most States the tax lien takes a first position over other liens.