They would likely lose any homestead tax benefits and possibly lose other things as well.

In terms of taking on more liability, it boils down to what insurance will be less expensive and looking at what we are having to pay through the HOA (for insuring the aggregate of all units), it will likely be cheaper for owners to purchase individual HO3 policies to cover their units (as townhouses) as the carriers would not be taking on the risk of the entire $100M+ in aggregate replacement value, and the owners can take out policies for individual units with a whole range of carriers vs the HOA trying to get coverage through the secondary market.  

Truly bizarre my experiences were always the opposite I would walk into a non payer and the place would be 90 degrees plus or if furnace needed a reset the oven would be turned into a space heaterBecause you are literally attached to these tenants and occupy the same building be as proactive as possible and keep your cool and deescalate to keep you safe too!  

Yes if the entire LOC was used for this rental property 

And yes, your entire gain is wiped away. 

To aggravated the matters even more, in the rare case whereby a buyer finds a fsbo on Zillow, the lising points the potential buyer to a realtor – owner’s contact information is completely obscured while a realtor’s info is as highlighted as possible at the very top of the page, so concomitantly and in a subliminal way the page containing the fsbo listing implies to the potential buyer that he/she needs a realtor.

File suite, possibly small claims suit.

In what way do you possibly think your property could hurt someone without it also being at least partially your fault?

And/or are you willing to go through a potentially more rigorous underwrite to get better terms (possibility, depending on what you've got on your end). 

You do this because you want as many people as possible to go after if rent is unpaid.