I am a Tampa based RE Broker that specializes in STR investor acquisitions and also co-own a PM Company. 

@Dan Heuschele brought up that there are property tax cap increases in certain states (California being one of them) - this is why people in California who have owned a long time might be paying $2000 a year property tax on a home they bought for $70,000 ($70,000 was the base assessment value and property tax only goes up 2% year) now worth $1.5 million.

Based on my experience, most illegal immigrants are hard workers and pay their rent.

Over improving a home based on the neighborhood doesn't help us either. 

Memphis has a very strong rental base with additional growth potential in the coming year. 

I look to develop relationships with my bankers and go from there but understand they are not the most flexible people based on the law and regulations. 

Or you can refi as two separate condos, or as a duplex depending on what fits your needs, or maybe you sell both off eventually, but having the flexibility to exit and a couple different ways allows you to pivot based on outside forces.  

Furnished Finder's draw is that after paying the yearly fee, Furnished Finder doesn't take any commissions.

The investors I work with here are mostly looking at student rentals near the university or focusing on areas near Fort Jackson, so there is always a good rental base here!

Based on what you have said here, it seems like your A/C damaged them, and asking for payment to be made whole seems righteous.If you pay, talk to an attorney to make sure its a one time shot, and that one payment settles the issue 100% forever, so they will not come back for more later.Good Luck!