I will report on how it goes.

.  Myrtle Beach area of South Carolina was just named the fastest growing area by US News and World Report let me know if I can help you if you want to know more. https://realestate.usnews.com/places/rankings/fastest-growing-places

May 2021: LOI submitted / negotiated (14 days totals)July 2021: PSA executed after 40 days of back-and-forth August - December: 3rd party reports, meetings with city, meetings with builder/partner, architectural drawings, pro forma revisions, etc Q1 '22: Lineup debt/equity June'22 - Ground breaking, with construction expected to last 16 months.

It is wrong to not report or acknowledge defects.

If your rentals are reported on SchE then you should be fine. 

Read any Consumers Report article on warranty/insurance, they tell you not worth it.

However, it turns out that they lied about the credit score because my credit report now shows "this loan has been modified" even though it was never actually late.

Report it ASAP and you may be able to rent it for Aug 1. 

My understanding is that the money has been reported on the K1s as profit, we've paid taxes on it, and we should have taken owner draws. 

I do have a decent screening process and uncovered that their reported income was nearly twice their actual income.