Due on Sale, Insurance issues, heirs to worry about would be risks specific to Sub2, not seller financing.

@Denise Supplee and @Arman Ahmed gave good advice on leasing w cosigners, and making the leases individually/severally.Keep in mind:  there are two separate and distinct types of student housing tenants: undergrad and post graduate.What I've found over the years: If you want to deal with adolescent, underage, first-away-from-home students, be prepared for more hand-holding and maintenance issues. 

I definitely want to stay clear of anything that could trigger fines or compliance issues, so your point about STR activity in communities with rental caps makes a lot of sense.If the documents don’t spell out any restrictions around owner-occupied MTR/LTR setups, I’ll look into the roommate or owner-occupied lease option you mentioned.

They had sent messages to the host through the vrbo platform with pictures of the issue for a couple days. 

It’s a good idea to confirm with the city or a local attorney before moving forward to avoid any compliance issues.

We’ve since retained a different attorney but have been added as a third party to the lawsuit because we sent an email stating we weren’t accepting or denying tender but had contacted both title and homeowners insurance to see what coverage might be available to cover the issues.

Scratches are a bigger issue than wear through.

I once called the county clerks office and was on hold for 27 minutes only to be told I have the wrong extension. the call center representative then told me there’s no way to find the correct number online without being told directly. we then had a long chat about the numerous misdirected calls she's received for other depts facing the same issue. 

Typically, if any payment issue has occurred, it is resolved the next month if reported to the correct person.

If you’re asking for draw funds and the work hasn’t been completed or there’s issues with permits that’s going to be problematic.