The comment was based on a desk review of a couple places within 4-5 blocks of John Hopkins Medical Center.  

Taking on the additional risk of pet damage will not bring me any more income so I do not allow them.

I'm curious if it is legal for a landlord in the state of TN to charge a tenant an additional months worth of rent as liquidation damages if they break the lease early?

The quality of rental and housing jumps drastically from block-to-block and neighborhood by neighborhood. 

Every city it seems has a huge change in values block by block and the cheap houses are cheap for a reason.

It would probably be worth trying it on Airbnb with some furnishings as that way you can block off the days that you want to use it. 

Much of the city is very block by block and its a good idea to take a look at the home values in different areas as well as the proportion of owning vs. renting in different sections of town. 

(No matter how good you seal it, it will get water damaged.)

What sort of document do i use or create stating they are temporary guests and that all responsibility remains with my tenant for payment and any damages? 

My cost of living is significantly lower than if I owned a house down the block; I'm even paying a lot less out-of-pocket than my tenants!