Although it is true that C class tenants are generally as dumb as dirt the bigger hurdle to overcome with them is their attitude.

The stigma of a flood is always tough to overcome as it will have to be disclosed. 

You definitely need to consider the liability, however, you can overcome that with insurance and taking the proper steps to follow the laws in your state around securing the pool.

you have to tell your buyer, likley illegal not to, but you dont want it blowing up an escrow...... but if the house didnt cause the murders... aka it was an angry spouse, could have happened anywhere, not because of neighbors or a local gang etc.... then price it attractively and people will overcome the ick factor.  

Any advice on how to overcome this problem and get a loan would be greatly appreciated!

Then I hear news that Freddie will no longer allow lenders to contribute grants to reach the 3% down payment requirementI am looking for suggestions to overcome the down payment hurdle.  

If they have an objection overcome it and redirect them where you want them to go.

I'm hoping that some wisdom from the BP community will either help me overcome my fear and throw the number out or confirm my old negotiation voice.

If so, how did you overcome it?

@Phyllis Effah I don't know if they'll look down on you, but it's a hurdle you have to overcome.