You just really don't want to take this on if you can avoid it because you will automatically be in the hole with not only a non-paying tenant but the out of pocket costs of the eviction, which can be substantial.

Yes water and sewer are commonly paid by the owner, but you can always charge the tenants a $75-$100 water surcharge fee every month to help offset some of those costs.

You will want to also look into a cost segregation for your STR.

There is probably a number you have in your mind that will make this worth it or an amount that is needed to offset the cost of additional resources to continue to support this tenant. 

But, you need some reserves and it costs more to buy in at this level. 

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620, many blemishes, but should have no evictions in last 2 years.

You have to weigh the cost of a non-renew against the potential income you could make. 

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620, many blemishes, but should have no evictions in last 2 years.

I read everything on Carroll's website and scoured the web for all the cost information, etc. but I haven't been able to find anyone who's actually built with it.  

One of the biggest complaints with DSTs is the high cost/fees associated with them.