The market was hot (like today.)  

But you're buying in a high appreciating area so it may be worth having renters water down your principle while you appreciate.

I'll bite bc I love the STR market conversation - Mammoth Cave in KY, New River Gorge in WV, Hot Springs in AR, Nashville, IN (the town Nashville located in Indiana), and any major college town that you don't hate with a growing population and level 1 trauma center hospital. 

Meeting with a real estate attorney is the right move, as they can confirm whether the HOA’s claim holds any water.

In a hot market I was one of over 20 bids.

Make sure that this won't put your future buyer in hot water with the VA or his lender. 

Of course capex does come into play, but I have a lot of factors on my side including most major components of the property have been replaced already, including roof replaced 2 years ago, water heater replaced 3 years ago, full house was just repiped, septic system is 5 years old, HVAC system replaced in last 7 years, i do not cover appliances with warranty in my rentals, and the tenant I placed in the property is a single dude who works 60 hours a week and just needs a place to sleep.

Southern border of the land is Wilson Creek (a large, well established, full time creek with old growth trees)Approx 1 acre of non-recoverable flood zone along length of creekTwo small ponds on the property, which can be filled in to utilizeSmall neighborhood to East of property line with utilities ready and available for project Currently a couple of older homes and barn structures on property (100% liveable and well maintained)Wilmeth Rd is currently expanding down the block to a 4 lane road which connects to Highway 75 in McKinneyLarge developments are underway within a 1/2 mile to 3 miles out radius<4 miles to Costco, ChickFilA, WholeFoods, Cinemark, major hospitalAT&T Fiber and Atmos Gas at front of propertyA water well can be run, if desired, or tap into the city's water (currently on city water and has large main at front of property)A CE firm has drawn up plans for a small, 12 home, 3/4 acres development.

Several reasons: market rates, cost of operations, risks of the tenant in particular, rental history, turnover potential, loss of rent during turnover period, "hot" or "cold" market, etc.

This includes incentives for green building practices, renewable energy adoption, and water conservation measures.