And my #1 issue is I don't see any actions to address this in a meaningful, market specific manner. 

It appears to be a means to an end and the path of least resistance (somewhat related to number 1).

As Stuart mentioned, there are several issues that might arise with the property, which could definitely impact your cash flow. 

I agree with the other comment, you unfortunately do not get that money back even if the seller was not upfront on an issue. 

Personally, I find BTRs to be more predictable with fewer ongoing maintenance issues, and they tend to attract high-quality tenants.

We're relatively new STR owner/operator in Highlands and have been very pleasantly surprised with demand even outside the peak summer season.

There are large areas in the direction of the flight paths that do not have dense populations so it’s mostly a non-issue.

I have two options 6.625% 30 year or 6.15% 15 yearI want to invest aggressively in the near future on more propertiesThe loan is only $110k and the monthly payment for 15 year is $563 and $750I will earn 2-3k a month in gross rental revenueThe property is in a declining population areaRecently rennovated, and all major things were relatively recently improved such as plumbing, the roof, a/c, electric, etc.Will require a lot of management as it is rent by the room so I may switch to a normal rental after 10 yearsI'm trying to find what will mathematically net me the most money in the long run.

We are still relatively small with only 5 properties, 7 doors. 

We've had her for 10 months, she was quiet, kind, when she had an issue with the apartment she would let me know and I would come fix it.