It's unlikely the Landlord would be in trouble unless the tenant can prove it was reported and the Landlord failed to act.If I were the Landlord, I would hire my own professional to go in and investigate.

There's also a very good chance they'll resent you.If you need to raise more than 10%, I recommend getting them out and starting fresh with someone that has been screened for market rate and is willing to pay it.I also recommend a clause in your lease that automates rent increases every year so tenants know what to expect.

Will we even get approved for the refinance without the stable incomes since it is all so fresh in our history?

I am fresh to studying and starting into my rental investment journey.

Police is still investigating the case. 

Then move on and TCB like a professional.Not to say I’d allow the tenant to flex on me, per se...but I’d be more concerned about the potential property damage and hassles of a disgruntled tenant than the germs.Also, this move would play better if you offer a fresh mask sealed in an original package.

Note Texas Workforce Commission investigates which take a long while and will sue on their renters behalf if they truly believe we violated any rules 

Section 1031 encourages turnover and investment of fresh capital in these properties, improving neighborhoods and providing decent places to live.

Colin is excellent at property management and will bring a breath of fresh air to the STL market. 

I would just caution you to also investigate if the property is allowed to be a quadplex based on the zoning.