If you have any loan questions feel free to reach out. 

Houses out here cost average $1.3M and rent for $4,000 per month. 

For example, with 5% inflation, a $100 basket of goods today will cost $162 in ten years.

Again I cannot collect rent to justify this cost/effort.  

I own the property free and clear and i use the equity as part of my business line of credit.

You can also assess a dollar amount that you value the cost of these requests to be, and ask for these as a discount from the purchase price or a concession to you for closing costs. 

I’d appreciate your perspectives.Here are the details about our current home:3/2 Class A property in a middle-America town with historically ~1% annual appreciation.Purchased in 2020 for $200,000 at a 3% 30-year fixed rate.Remaining mortgage: $150,000.Estimated value: $270,000 (based on recent sales).After selling costs: Likely $100,000 in net proceeds.Rental potential: $2,000–$2,300/month.PITI: $1,200/month ($700 mortgage + ~$500 insurance/taxes).Maintenance/CapEx/Vacancy (20%): ~$400/month.If kept as a rental:Net cash flow (self-managed): ~$500/month or ~$300/month with property management.Low appreciation potential but ~$400/month in principal paydown.Considerations:What’s the additional overhead of managing a second rental property remotely (3 hours away)?

You said that the coverage of the loss and I assume the cost of legal defense was an "exclusion" to title coverage.  

When I have some free time, I'll research other options that won't cost a fortune for the small guy.

Quote from @Dylan Webb: Have you talked to a lender to see what it would cost you?