You're own housing serves two purposes. 

Step 1:  hire a competent real estate attorney.Step 2:  learn from your mistake, which imo is when you discovered the tenant was running an unlicensed, unsanctioned halfway house, you should have tossed him and his daughter out, along with all the 'youths with checkered past'.Step 3:  Consider it MANDATORY for owners/landlords to KNOW the state's L/T laws BEFORE leasing the property out. 

Selling properties that are serving you well doesn't seem like the best play either.  

No worries, Its been an absolute privilege to serve!

@Pat L.

So, I got a P&L from the seller and I calculated the numbers below, what intrigues me is the Mortgage Insurance is so high, the area is in a flood zone but is this typical for home insurance to be this high?

One company owns everything and does nothing (this is your SLLC a/k/a “asset holding company”) and a completely separate company handles all of your operations (this is a traditional LLC a/k/a “operating company”) For the operating company which serves as your face to the world and through which you do all your business, you establish a Traditional LLC to carry out the operations of your investments.

@Kris L.

Bottom line is that while you think you may need an attorney, personally I would waiting until an actual suit/or demand for money is served on you.  

If I am buying a property which should be based on P&L it should yield a positive monthly return.