The numbers are simply in line with the diminishing pool of buyers, the higher the number of units gets.

I also get a better pool of candidates.

Get a boundary survey and have the seller move the fences to the boundary... unless it is obvious the fences are not intended to mark the boundary (such as guarding a pool) otherwise you may lose the land eventually to an aggressive neighbor or you’ll have to deal with the issue when trying to sell. 

Also what are your thoughts on the current rental market..Im wondering about the available tenant pool for a 3+2.Thank YouCJ

About the property: 230 doors, 2 pools, 2 club houses, 50% of property is direct golf course frontage, bad reputation in town for being run down, actually is run down and in need of renovation, currently running 22% vacancy as a result.What are we are currently planning:  Training personnel to upholding our business standards, renovating units at a rate of 8-10 days per (based on previous experience), changing the name, new signage, creating actual curb appeal through external paint and landscaping. 

Is it common for SFH tenants to put up above ground pools?

IT depends on the HOA, not all HOAs are going to cover things like HVACs and roof, I'd guess that most multifamilies with HOAs are primarily for landscaping and/ or community features like a pool, park, basketball court etc.

@Joe Splitrock Admittedly my "EQ" is not naturally off the charts, but I have evolved to understand that being nice in difficult cases sometimes serves certain situations.

And then you have Appreciation, I know everyone will tell you you can't count on it, and while I have no idea what Appreciation will be next year I do know what it has been over the last 24 years (see chart below). 

My section 8 inspector told me they have some wiggle room up or down but that the rental amount chart from the sec 8 office is a good guideline where to price your rent.