I don't follow your advisory, if you follow the laws, pay your taxes, and buy a place that allows for these types of daily rentals, the risks are mitigated. 

This just mitigates the risk that a renter will expose the material to too much moisture because they aren't going to be as conscious about it as a homeowner may be. 

They seem to cost a bit more, but seem to have a better built in mitigation factor for stability of income.O WOW, thats insane!

But that is not representative of necessity and can be easily mitigated by going with a TK company that is NOT the PM company, as I have done.  

After speaking with the mitigation manager at the remediation company as well as our county's Department of Public Health - Environmental Services department it has been determined that the property is not uninhabitable.  

We have the ability to mitigate these issues.

Once they have this issue, even if mitigated by a licensed contractor, they still must have this disclosed upon sale or transfer.

We are generally very conservative with our projections to mitigate risk. 

Being new to Real Estate Investing, I'd like to mitigate my risk as much as possible out the gate.

Why not ask the owner to call his bank's loss mitigation dept and see if they would do a short sale?