If you had been sued in that time it could have been a problem as well if the LLC does not follow proper formalities in the state.

Additionally, if the land is expensive, building small houses will make valuation a problem, as the land cost will be a larger chunk of the cost/valuation.  

I ran into the same problem as you, but then found someone with capital who felt nervous about jumping into real estate.

I do realize how stressful a situation like this can seem but don't let the stress of their domestic dispute become your problem as a Rental Business owner.

We got around that problem as my wife handled finances for her mom, had a $100K joint account going back 10 years, so we showed them that, even though we actually used the HELOC for the down at the closing.

That should solve your problem. A

If your rent is equal to or higher than theirs then that’s likely a problem as well. 

But usually when you open up walls its pretty easy to find the problem. A

I'm not sure how long they'll be in the fixing stage but that could be part of the problem as well. 

Austin suffers the same problem as Dallas.