The main question will be the requirement of negligence for liability and whether OP acted properly or waited too long to address the issue.Not too long ago I had to go to court to represent an HOA on a water damage claim.

I see the State of Connecticut offers DPA programs but you have to make under a certain amount of income and can’t be co-ops.

Based on the OP, it sounds like she wants to keep the tenants.

I had an option to buy a park up in Lincoln, NH and a guy showed up from the state of NH, encouraging the occupants to form a Co-Op, which they did, so I had to step aside.

. :-)Not saying the OP isn't more than capable of nailing the STR thing, but I don't believe it is that easy for most newbies....many more moving parts than LTR.

@Jason DobbinsThe OP used a hard money lender.

Good thing for you, OP, is that there are some people other than myself that would gladly take your deal if it works with their numbers.

We bought one plat called Rainbow Knowles this way.. it had 120 lots on it and we bought it as a piece of acreage .. now in LA county if lots were created before a certain date 1920 something you cant just bust them back up the way we did even if you have the legal description like the OP is posting about. there is a whole section in the code on Antiquated lots in LA county. 

I've seen plenty of rates in Dallas where the op has to be negative...and could probably operate better as LTR.

In both cases, you cannot entirely discount the other.The property the OP referenced, if properly rehabbed and kept as but and hold will be easy to place a quality tenant   It should have outstanding long term appreciation.poor location can be difficult to place a quality tenant and their are locations (mostly in the Midwest) that have not appreciated enough to keep up with inflation.