@Michael NahmYou need to tighten up your processes.

I have heard Charleston has tightened up the STR requirements.

Here in CT they have tightened up on the disclosures and the answers you got may make the former owner liable especially if the creek ever overflowed in the past 20 years and she did not disclose that.

It IS true that the apartments have caused a strain in leasing SFH around Tech, but there are still plenty of people who want the house experience rather than the apartment feel. 

You don't have to be double doing the work and you don't want to cause strain on the relationship through this.

Turns out that as the credit markets have tightened dramatically, many of them no longer qualify, or qualify for less and need to put more down.

I see this as a definite sign that the market is tightening up pretty much everywhere at present.

Don't expect to see any more money from them.Get them out.I recommend that you learn how to tighten up your screening process.

Your energy auditor can also tell you ways to "tighten up the envelope" to save even more.

Once you have done a few and understand your response rates, you can tighten things a bit and make your marketing and planning better.