I removed the chimney and added modern HVAC, making it the only house on the block with it, significantly enhancing its value.

I removed the chimney entirely and installed a full HVAC system, making it the only house on the block with modern heating and cooling.

Provided you are sticking to the letter and spirity of your rental agreement, you have to set boundaries People that get indignant over you setting boundaries are not worth worried about. 

Letters are a good start.

We added a hot tub to our studio thats 6 blocks back from the beach and it won't stop booking.

Here is what I would do:I would still close on the property but send a letter to the sellers broker and the seller along the lines of below (note I would have an attorney write it and send it):It has been brought to our attention there was a $15,000 insurance claim on the property.

I also received a letter from the county saying that my property is in violation of several health and safety codes. 

Since you're a citizen but you live and work abroad you'd still qualify mostly for second homes occupancy or investor non owner occupancy (primary is hard to claim if your job requires you to be physically next to the office as an example so an underwriter isnt going to readily believe you unless you can get HR to write you a letter to state you're remotely capable of earning this income/job duties anywhere).Hopefully that helps let me know if you have further questions into mortgage planning.

You were correct that you can discourage/block an applicant from applying without breaking a fair housing policy if your application process requires them to tour. 

Then I mail a very simple handwritten letter and usually get north of a 30% response rate.