(We've been 95% occupied for our units for the last several years.)

the 5% is minimum and that changed this last November . 

Let me know what I can do to assist you in DFW area.Waxahachie is a bit out of my wheelhouse, but was there this last week.What do you need done?

My husband and I started our journey last year with a house hack and 2 long-term rentals (after an exhaustive review of all options), there’s a lot to consider and ultimately need to ladder up to your short and long term goals, as well as your lifestyle (esp with kiddos). 

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+, zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680, some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

(ha)  :) Taxes for STRs in the Gatlinburg area have doubled and tripled over the last 2 years. 

At least here in Denver and Colorado Springs, where annual appreciation over the last 40 years has averaged 4-6% even with some major housing recessions, appreciation is where you make your most money.

Some people are getting list price even though asking 40-60% over last year.

Our 1 bedroom units still do well renting for around $3500 last year, it's just the type of tenant that has changed over the last few years.

With the tenant friendly courts in Denver it's probably not a bad idea to cut your losses and send them on their way with their $630 but just be sure to tell the whole truth and nothing but the truth when the next potential landlord calls you up for a rental history verification.