Quote from @David Eyal: This is actually very simple: don't get involved in personal issues.You offer them a renewal.

I have locked up one deal off the application and have offered in person on 2-3 other deals.

you mention the person who is complaining is now and living in an efficiency unit (to me that has everything in it-ie fridge, stove). 

I will say that if you get some ducks in a row, things like a good cleaner, handy person etc, you could manage from farther away if you find a deal or area you are interested in.

Please do not take this wrong, but I am wondering if there is an intent by one or more parties to take advantage of the situation, because of your great desire to purchase the property.

The LLC is a legal entity separate from your personal self. 

We took this approach because even though the house is an STR it is also one we want to use as a family a couple times per year, and we feel we have our own personality as hosts, so we were particular about what we wanted. 

Your desire to avoid a few pennies in taxes makes for a very convoluted description of the proposed transaction.

I gave them a lease in person to review and sign (I gave them the lease first as they mostly speak Spanish and the lease is in English, so I wanted to give them the time to read it).

Unless there is an offer deadline, I personally think order of offers has influence on sellers.