@Jerel Ehlert Thank you for taking time to post all that helpful information, I would like to clarify, I may have misused the word passive, I throughly enjoy real estate and it’s a true passion of ours, we enjoy the Hunt, Reno process and even being a landlord and managing our properties, we are leaning more towards either using leverage to buy many SFR or Multi-Family.

@Bruce C.The penalty for misuse of funds is 150% of the original principal loan amount, as well as federal charges.

Aloha,A fundamental flaw with every subsidy program I have worked with is the issue of removing a tenant that has failed to fulfill the terms of the Landlord's Rental Agreement, whether by not paying their portion, damaging property through misuse or by intent, or causing other issues in the building/complex in violation of rules.

I have a tenant that the wife has a clear back ground, but her husband has a felony for a misuse of debit card for $32?!

The most common way I see people misusing money is when they spend it mindless or on things that they don't truly value.

The washer is definitely from tenant misuse but unfortunately got included in the lease. 

If the diagnosis is unsuccessful but the professional determines the problem to be caused by tenant misuse/negligence, I bill the tenant for the service call.

That's dangerous.The most common and dangerous misuse of an appraisal is by the borrower for the purposes of satisfying an appraisal contingency in a purchase agreement.

If you own the lots, and you can get the house 60% built - meaning it is dried-in (correct my spelling or misuse of this term, as needed) - then you might be able to go a local hard money lender and do a cash out refi to finish the project. 

What is bothering me is that they are trying to misuse as were saying last time going to talk to their lawyers don’t know what for how to avoid paying rent ?