But they don’t know proper thinning and trimming.  

You should have boiled them down to the following lack of proper due diligence.  1.  

As @Terry Ouimet said...when you start off a project (or anything in life) from a bad/illegal foundation, it will never be right2) Yes absolutely we need to bring back or start anew with a proper green card/work visa program so we can get all of the LEGAL help we need in this country.

This likely means living in Louisville proper, depending on the job's location.

@Gerald Koonce Private lending from family members is allowed with proper documentation and compliance.

Gatlinburg and Pigeon Forge are both extremely strong right now , with most people overpaying in the years that you mentioned and simply not KNOWING OR CARING  how to properly run a top notch Air BNB. 

Grow a pair and dont take any crap. 

This would be my first STR so I also am personally interested in giving this business model a try to see if I do want to operate in this space longer term and want to do this properly. 

So, they got taken advantage of.4) They didn't do enough research on comparable properties before doing repairs - so went either overboard or slumlord, instead of properly Maintaining to the Neighborhood.The other challenge we encounter often is investors expecting perfection.

However, once a portfolio is properly diversified in a rather small number of different investments, the portfolio has reached maximum risk aversion by diversification.