I do not think they regulate this strictly on other industries like food service, or even medical.Sounds like the mayor or city planner or someone "important" had a bad stay at a STR somewhere.

Not every investor is willing to take on properties with these kinds of challenges, but if you can make it work, the rewards are huge.

The best defense against rats entering your property is to seal off all entry points (holes, cracks in walls), remove food sources (dirty dishes, food left in trash cans), and water sources (like leaks). 

It wasn't easy and sure as hell was not as frightening as your journey, but it was rewarding nonetheless. 

You and your partners are going to do nothing but put food on the table for your GC, Agent & PM.

Seems like a high-risk, low reward situation though.

Never fully trust anyone that isn't willing to share the negative aspects of all this.As I'm sure you've experienced, this can be a very rewarding path to take and depending on your grit and determination, overcoming all the pitfalls are well worth the effort.Cheers and drive safe!

I presently have a negative cash flow  in all 3 properties but am more interested in paying off the mortgages early to reap rewards later.Any thoughts? 

People reward you with there appreciation and $$$$. 

Its a steep learning curve but very rewarding if you stick with it.