If you do decide to buy with them please have a reputable law firm do a title report and review the agreement.

If so, that could cause issues on the back end - not a lot of lenders will let the wholesaler use their own title company due to hiding issues, etc.

What's the issue with taking losses on a Single Family Home? 

Anode rods last 2 to 3 years not months so obviously you have other issues. https://www.amazon.com/Magnesium-Anode-Flexible-Water-Heater...

What are the best ways to prepare for the Law & Safety and General B license?

Since there is no lease, does anyone foresee legal issues with removal? 

We all know these laws are coming, it's just hard to keep up with what every state is doing and when.

Personally I'd do whatever my atty told me to...It's probably a couple hundred bucks to make sure I'm meeting the req's of both the security deposit laws and the BK laws when I send them info. 

Do your best to mitigate issue before they crop up and annoy residents.Maybe create a free service, for those that are not using your management services, to come and review their STRs for safety, procedures for help etc.

I would look to 1031 exchange into the midwest market if you want cash flow, landlord friendly laws, and lower taxes.