The largest challenge with a boutique hotel, or any industry for that manner is staying on top of your game.

@Dray MoultrieThis late in the game I wouldn't worry too much if they reported correctly or not.Just make sure it's correctly on your return. 

Almost all banks want you to have "some skin in the game" or have some money in the property.

Pitch Anything by Oren Klaff is a game changer in my opinion.

We are new to the game and have been looking at potential flip and or BRRRR opportunities in the Stockton Lodi area of Northern California.

My suggestion to you is to get together with your PM and come up with a game plan on who will appear in court and if an attorney should be contacted to represent. 

Im really new to the landlording game, and im trying to get clear information on how to properly and legally deny a tenant application.

We sold it a few years back even though we loved the location (you walked down the front steps to the sand of the beach - Properties with this feature in So Cal start at over $5M).We have achieved much better return on our San Diego RE but I sometimes question selling the property because of its location on the beach.

Depending on your age this could be a game changer for your future lifestyle don't waste it. 

Its kinda like the game of chess imo, at first it seems simple but after awhile you realize the more you know the less you really know.