I'm witnessing my neighbor go through hell and paying for squatters living in their house and losing money instead of making for 7 months while trying to get these people evicted.

But you need to make money, so subtract what your fee is, and that is your offer price to seller.

This section relates only to a fee, charge, or other sum of money required to be paid under the lease if rent is not paid and does not affect the landlord's right to terminate the lease or take other action permitted by the lease or other law.

Many times they have spent a lot of money to go on this vacation and want it to be perfect for themselves and their families/friends - a little empathy on the hosts/PM's part goes a long way. 

I have done a ton of research and spent quite a bit of money getting consultation from lawyers and CPAs over the past few months on how to do this correctly.

We are realizing that this home doesn't fit our lifestyle anymore and we want to pay down debt and start saving to buy our first rental property. 

I rather fix the damage, have the neighbors insurance pay for it, and find a new Buyer once the issue is resolved.The important question is: After I say NO to the requested discount, if the Buyer decides not to proceed with the purchase, would the Buyer be entitled to receive their earnest money back or should I?

Earn money, build your credit, save up, and invest wisely.

problem is now a days with inflation and overall costs travelers tend to want to save money.

They often hope you'll go easy on the screening process in exchange for some extra money.