I'm in the Western White Mountain Region in New Hampshire if you decide to do stuff up here, I know enough about STR to be dangerous

Hi BP friends, I usually use PropertyShark to examine and compare properties for my analysis.  

I own and manage mostly class B and B+ single family homes and condos, but I have heard that evictions have ticked up in class C, that’s one of the problems with chasing cash flow is getting into class C and dealing with a tenants that are not as well qualified and higher risk of default to begin with.

The reason I say this is to lead into the answer from your question. 

As others pointed out, this may be a situation where you want to record the inspection to document her odd behavior in case you have to defend yourself in court.

Muddy up the waters more than that and it can become impossible to leverage.  

In this case you can do up to (6) residential units and (1) office space...but that is the cap. otherwise 4 units is the most you'll be able to build.

It was rented before I even got a chance to put it on the market.

Best practice is to operate as an MTR and backfill with STR guests because if you open up your calendar to STR guests without tight restrictions, you're an STR.  

take your bonus, pay down the home and sell it. not much creativity that can be had. if you try and short sell it the banks could still come back after you and it will crush your credit. chalk it up to a very expensive lesson learned - was it driven by FOMO of feeling like you needed to invest because everyone else was making money?