The returns would then be distributed to investors, who would declare them as income in the U.S. under their country’s tax laws.I run a flipping business in Europe, working with foreign investors, including Americans.

Don't apologize, don't explain how the 'chosen' tenant was more qualified than they were, wish them well in their search.You're running a business and you've made a business decision. 

Pull out a spreadsheet and go through the tools everyone mentions to run some comparables and take note of photos, amenities. 

BP reformats my posts to a run on message every so often.

Banks these days are not run by people anymore.

As Alex mentioned (thanks Alex), I run the Santa Barbara meetup.

I’m sure others here are also running into this issue, so any recommendations and referrals would be greatly appreciated!

The contractors you run into inside & outside the store, will be hard workers.Good luck!

I'd run your numbers based on that to understand what a realistic offer would be to most people and then see if you can be competitive. 

If that is all ok then get a very good local realtor to run comps in that area to determine the conservative value of the home once you've completed the renovation work(ARV).