The bad one was just a mean and manipulative person, but she didn't trash the place. 

Forget the VERY obvious (to the IRS) tax fraud.

The project dragged on for over a year, with constant headaches, budget overruns, and stress.

Without any major renovations, we strategically sold the property the same day for $20,000.

Even with a significant 50%-60% down payment seems like the purchase price would have to be in the 170-180K range, which is a tall ask for those areas in 2024.

AND with STRs you have no risk of evictions (which can get to be real expensive depending on the area)  and most damages that guests do are covered by insurance (either through the rental platform it was booked through or sometimes the property management firm has added insurance too).As someone that build a large long term rental portfolio here in Illinois (I still have 40+ houses here) and somebody now building a portfolio in tennessee, I would definitely recommend looking at new construction in some of these str areas. 

I sure could use some guidance along the way.

Just for some info, we have to do DSCR loans at this point in our life and we will not be selling in the next 5 years.

The government provides compensation for the condemned property. 

How is the Belleville, IL area?