She says that if she turns the flow low though the water does start to get warmer but it never turns hot.

Mold requires two things to grow: water and food (dust is sufficient food).

(that policy was cancelled by the carrier and I will be getting a separate policy)2 hail damage to Tennessee property  and water damage due to storm (claim is in process) Another Tennessee property now has had a water pipe burst in the kitchen ceiling and flooded the whole house. 

Tenant pays all utils except water.  

If comps for a 3 unit property are in the 950k range, then that is what it will come in at.The revenue from the STR will have no bearing on the value of the property itself.People argue about it from time to time, but I spoke with 10 different lenders, banks, credit unions, private lenders, etc etc and they all said the same thing.

I'm not sure what the current appraisal value is, but comps in the area range from $600k to $1M+.

Opex has been a huge hit to most property owners in all shapes and forms, myself included, but to know to keep your back wide enough to cover your own you'll be able to navigate these waters just fine. 

Your best bet is a property on water and sewer in a non HOA community and either convert the garage to an ADU or Build a separate ADU .

Around here they range from $35 to $300 so that would be my first question!

ARV seems to be in the range of $735,000.