The first thing I would do in your shoes is to ensure that my personal assets are isolated from my business assets and my business assets are isolated from one another, in order to protect yourself from a suit. 

Once they did, they isolated the problem to one unit. 

Once you have isolated the concern ("besides this, is there anything else that concerns you") you can adress it.I just bought a property I was trying to list for a third less than I was going to list it (suggesting they have to fix it up a bit) and I almost did not ask enough questions to really understand what they wanted.Fortunatley I did not make an offer, but asked them instead how much they would take for it.

These are usually isolated incidents and I don't think it should marr the entire industry but it is indicative of "you need to check up on your investment". 

Can you isolate the Laundry Room and do a quick leak down test? 

The house still appraised for over sale price but I was wondering if this could be used as a negotiation moment or am I SOL? 

LTRs are not attractive with a STR unless there's a strict level of isolation.

The small MF I see are pretty isolated and not mixed in with SFH. 

I'm just sharing because I know a lot of people want to invest in that state.Hawaii is beautiful but has too many people and is too isolated for my tastes.

@Dave VonaI understand your disclaimers as to your process (only looking at IRR)… but isolating one factor really does you a disservice as to how to invest.