Then, they sign the lease, are issued a key, and can move in.Nobody moves in without passing my screening and signing the lease.

We’ve seen this issue cause otherwise wonderful new builds to sit on the market because it just doesn’t work with peoples furniture. 

It was bought in 2004 and due to financial issues, I believe ~$197k is still owed on the mortgage.

On the contrary, uncertainty is the breeding ground for creating wealth.The core of the issue is whether you are willing to step out of the traditional investment framework and explore new business models and market opportunities.

The issue there is that you have some people that just don’t work out and some people you have to let go.

We ran into the same issue when we made our Costa Rica investments and didn't really find a good solution for a local mortgage there. 

This plays into the affordability issues for tenants by allowing them to live in nicer neighborhoods for less money, yet I get monthly revenue comparable to short-term rentals.

The issue is new hosts don't have the advantage you are getting from your direct bookings.

As indicated, I never had that issue due to the infinite return.  

The biggest issue I see is that they are looking to restrict STRs in the area so why would I buy there knowing it could all go away.