We have a few dozen resort communities that are built specifically to be STR and you won't have to worry about zoning or regulations or even HOA cutting you out.It is a very competitive market with so many units, so you do have to be a good operator and have a clean, attractive, well located and themed out home to stand out and perform well. 

If I were you, I would wonder how I could make my STR stand out from hundreds of others in the same market.

You could also tell your tenant to just get a standing unit that doesn't need to be installed into the window itself... or just shell out some $ for a split unit :) 

@Daniel Sunday what do you stand to gain by making offers without an agent when offering cash?

@Priyanshu Adathakkar I understand where you're coming from but I don't think that standing out is "crap."

But stand behind the rest of my comment 

Usually just a large potted plant, a standing lamp, maybe an ottoman and a large area rug.

Where do you think I stand in terms of my contingency and EMD. 

Quote from @Neeraj Shrivastava: Stand firm and tell them you won't pay it.

the home I had in 85 sold for  180 the first big run up was 85 to 90 when things doubled or more thats when Hi Tech really got into gear.. in Silicon Valley.