The only "limitation" as an agent is having a governing body to answer to, but this will only be an issue for anyone who plans on being shady or dealing unethically with people.

I am trying to lean one way or another between doing a deed in lieu for six months and then refinance or approach the bank to attempt a short sale. 

Of course you don't know what you don't know so all I can do for now is say kudos for attempting to dive into a deal so quickly but please, read the books (or listen via Audible) published by bigger pockets so you can very easily build a strong foundation that enables you to analyse deals properly and then come back and ask specific questions about the things the books don't demonstrate well enough for you.Also, whenever someone says something you don't know what means (CoCROI for example), try to Google the term and attempt to learn from the internet.

I originally attempted to rent this to either a multigenerational family or to 2 smaller families but was unsuccessful.

After discussing with a local CPA, it looks like I am getting overcomplicated in my attempt to be creative.For the sake of simplicity, and assuming the numbers work, it may make the most sense to just sell my primary residence and purchase this one with a 30-yr note and just take the capital gains hit on the sale of our house (we've been in it for less than 2 years).

I wouldn't attempt to police what they smoke.  

As they are licensed, you have the regulatory body you can go to for any help if a person tries to burn you and it can cost them there license.

@Scott McQuilkin assuming you’ve explained to him that you only received the one month deposit, you should explain to them that you want to help but ask them to provide proof of payment so you can attempt to track it down with the PM.

I sent written offers to the sister by mail, even hand carried another offer to her residence in an attempt to open a dialogue.

We are inheriting tenants in a two flat set to close on July 3rd.  We were originally told by listing agent that leases were ending at the end of June and we would inherit tenants on a month to month contract.  
Upon...