Renter's Insurance is a cheap date for the tenant; it protects their security deposit and assets. 

It’s inexpensive to provide but can make a big impact.Comfortable Bedding: Investing in high-quality mattresses, pillows, and linens improves the guest experience and leads to better reviews, which can boost occupancy rates.Smart TV or Streaming Services: Offering Netflix, Hulu, or similar services is a low-cost way to enhance guest entertainment and stay competitive.Fully Stocked Kitchen: A well-equipped kitchen with basic appliances and utensils appeals to families and long-term guests, saving them money on dining out.Dedicated Workspace: If your property caters to remote workers, adding a small desk and ergonomic chair can set your listing apart.Outdoor Spaces: If your property allows, an outdoor seating area, fire pit, or hot tub can significantly increase your nightly rate and attract more bookings.Energy-Efficient Features: Guests appreciate eco-friendly options like LED lighting, smart thermostats, or solar panels, especially in eco-conscious markets.Keyless Entry: A smart lock is a relatively small investment but offers convenience and security, which many guests value.If you’re deciding on amenities to add, it’s always a good idea to research your local market.

I noticed that the previous owner let them pay half the security deposit and the other half later, which is a red flag.

It isn't having paid off properties that offers security, there are still taxes, insurance, maintenance and management involved. 

In short, securing an STR permit isn’t easy unless you fulfill all the township’s requirements

Assuming plans are needed to secure a permit.

End to end, I bought the land, secured permits, got the PPA and IA, SUP, and still own the project.

I just secured a deal in Solterra which seems to have everything in order regarding rules.

I guarantee you are more likely to secure favorable terms if the seller likes you and can imagine you as a great operator for the business.

Which one is more appealing - continuing to own the house or the security of that much cash/liquidity?