And most importantly, Colorado Springs has favorable STR laws. 

Fortune favors the bold!

You can also try looking for private money, but that'll come with a higher interest rate  and less favorable terms than a conventional loan.

@Shiloh LundahlVery interesting model ... if I understand correctly - basically you are doing a BRRRR + Rent to Own with favorable terms.This is being financed partly by hard money (for the initial purchase) and partly by private investment (for the rehab) My only question with regards to the model is -> Do those private investors have a debt or equity relationship?

Unfortunately, it did not work in my favor.

Facts and statistics say that economies of scale are more favorable when you go larger.

If they have their own unit, ignore all of that and just get a strong lease, but be firm and tell them you can’t do any favors just because their family.

She actually did you a huge favor by revealing her true nature this early in the lease (which is great news).This is what I call a cheap lesson.

In turn they expect a good product where their landlord doesnt act like they are doing them favors over justified repairs.

Also, do yourself a favor and change the wording of your lease when you renew with them next time to just state "no animals", drop the whole "unless they discussed with me" part, having that in a lease just makes more work for yourself, especially since you clearly don't want animals in your property.