Most MLS systems will allow you to run a report and see what % of list price are deals actually selling for..

The tenant used an online maintenance request system to request a handful of maintenance issues for the first 6 to 8 months.

Or find a property that is under-utilized or has below market rents.Otherwise, you could also do the OPPOSITE of the great advice from @Jonathan Greene and buy a property with multi-bed units or live in the larger unit and rent out the smaller unit - while getting a roommate(s).

Tenant further acknowledges and agrees that they shall be liable for all damages to _______ system due to intentional or negligent acts by the tenant, it's invitees, guest,  agents or licensees" 

Once we purchased I found a company called Water Systems (somewhere in the South).

STRs have unique tax considerations, so setting up the right systems early will save you headaches down the road!

Apparently this is an issue that other investors have faced as well, because it requires a bank manager to do a minor workaround with a field entry in the system in order to make it work. 

Buy a multi family with 50-100K and continue to hammer the HYSA.

Not only is it the right thing to do to help them get their legal ducks in a row about knowing SPECIFICALLY what the seller did wrong, ie did not disclose and can prove it was done for the sole purpose of deception to make the sale "smoother" but it can help you look good and have you learn how to avoid in the future (as you say "tighten up your due diligence")It sucks when agents "help" 1st time or largely inexperienced buyers long enough to make the sale and get their commission but then peace out on the client when something like this happens.It It seems like you are attempting to do the right thing which is admirable bc at the end of the day, the court system is the closest thing to a "business police" that ppl can get. 

I was interested in the finance and legal aspects of operating a multi-state buy and flip equity fund.