After you've informed her that the unit has been rented, you don't owe her any additional explanation or justification (and I wouldn't give her one - it could only lead to headaches for you).That's my take as a self-managing landlord.

A lot of investors are buying doors just to buy doors - there isnt much economic justification behind it, all with way too much risk layering. 

There is absolutely no justification for this.

The justification for eminent domain would be the cost of defending the current set up, health costs and environmental cleanup costs. 

The justification for this is to ensure that landlords get their rent from the financial aid received by the students so they cannot go and spend it all, even though most financial aid disbursements don't really get completed until a few weeks into the semester anyhow.  

Assuming you raise the rent over comps (with justification), you should be able to break even or come out ahead because of the seasonality in the Mid-South...too hot to cut in the summer, too cold for growth in the winter.

This OP, as I pointed out in my previous post, “doubles|down” on the lie that (1) personal assets are not at risk  - they absolutely are as the OP admits, albeit with some non sensible justification about specific assets not being pledged(2) protects personal credit - as already stated the personal guarantee necessary will affect the credit card holders credit capacity , and as such find its way to their credit report, and hence affect credit scoring. (3) is lower risk - this may be the biggest lie of all.  

I’m not arguing the necessity, or the fairness, or the justification of taxation, consumer protection, civil rights, etc, just stating the effect is distortion in the market.But, as I stated the taxation of a 0 - 20% rate on capital gains (ok 3.8% - 23.8%) is not only very low by the standards of the last 84 years, but also preferential to the marginal rates on earned income, investment income, and short term capital gains.  

These guys aren't pooling funds and buying D rentals in Cleveland ohio or Toledo ohio. you still shot yourself in the foot there's still no justification. between the two purchases they spent 9.5 billion dollars and they bought very nice, fairly new housing portfolios in strong tier 1 or tier 2 cities.

What is the primary justification for them trying to implement something like this?