Eventually I obtained insurance on all the aplliances in case a repair is needed.

If I had held I would have eventually made around a quarter million instead of losing 100k+.

Thanks in advance ;)  pay the tax. eventually will have to pay it anyways - rather pay tax now vs. buying a bad deal

In the meantime, we purchased a home with the intention of converting it into a short-term rental (STR) once we leave.

I specify that it has to be at least 1000 square feet (SF) (bigger the better), it doesn't have to be a 3+BR, but if it's not and at least 1000 SF I can convert it to be a 3BR.

If the landlord was aware of his past, yet rented to him anyway - any lawyer worth their salt would make a nexus between those two pieces of information and create a liability claim.In addition to the extreme negative press you would get, it also takes time, money and energy to defend a lawsuit you will eventually win.

I was interested in this deal because it offered the opportunity to convert a single structure into a duplex, maximizing rental income and property value.

Eventually I went to investment property (local purchase) and vacation home (2 out of state purchases).

We converted an existing shed to a 1 bed 1 bath apartment and now rent out the bigger house for great cash flow.

Try to track days on market and price trends to see how well an area is selling.There is a housing shortage in general, so every house will eventually be a home.