But by all other standards these are 2400 sqft 3-story townhomes.These homes are electrified, powered by the sun and incorporate the latest heating and cooling technology. 5 Mitsubishi Mini Splits and a CERV system by Equinox work to provide a very comfortable living space.

These places are usually a peaceful and neutral environment for important discussions.

Your accountant just needs to feel comfortable with it.  

I do not feel comfortable going back over there after how they acted during the inspection.Do you think they will have legal grounds to move forward with suing or rent escrow actions given the following circumstances 1) "as-is" language in the lease (pasted below); 2) nothing about smell is included on the pre-move-in inspection; and 3) the city inspector was already out and stated there was no violation?

By adding a mini split, I increased the value for sure, not to mention increased the comfort of my STR guests.

With our higher interest rate environment, 3% or 5% down may not be enough to be cash flow neutral.

For the language in the lease, I would just add provisions there on what you're comfortable with.

Having $200k and trying to get over a 50% return to start in this economic environment is going to be extremely challenging but even more riskyBesides replacing income look to other areas where you can reduce costs

Rents in the area are anywhere from $1k-$1300 a month.My plan was to get a hard money loan to get it going and fixed up and ready for tenants, then within about 6-7 months refinance the home with a traditional lender, then sit with that home for awhile until I get fully comfortable with the one house.

It's not a good sign, but wouldn't be disqualifying for me. it does let you know that the applicant is comfortable refusing to pay an obligation.