For instance, if the tenant accidentally sets a fire and burns the property down.  

Its the same thinking as any other kind of insurance, you insurance issues significant enough that you could not cope with them if they happen such as the house burning down. 

We had been inside the property several months before to meet with them and did not detect it then - they were burning incense (should have been a clue). 

Thanks @Cassidy Burns and I'd be happy to connect @Marco Spaziani Brunella

its a big pain in the butt to coordinate showings with tenants and you dont want to burn out or piss your tenants off by inconveniencing them with potential buyers who maybe just kicking tires..

We were of course never deceptive, and they were aware it would be a short-term rental.So now I am just praying the house doesn't burn down while my agent is trying to find another company. 

I took out a mortgage at ~7% and now simply burning cash.

You may hear of people who are successfully doing it, but there have been lots of instances where people think they found a great scam to pull and then found out later it was really illegal or they somehow get burned when the jig is up.

Great area for MTRs and STRs, but the market is very cluttered and many current STR owners have open calendars because of the mistaken belief that horse people have $$$ to burn - for that demographic, go to WEF - the Wellington Equestrian Festival further south.

@Brian Burns You could do things this way, but it will be slooooow and taxes will eat your flip profits alive!