However, the bank didn’t catch this (and I didn’t realize it was a rule I had to bring 20% and seller credits couldn’t be part of this). 

I went to the house, picked up the keys, walked the property, and emailed the investor a list of repairs I thought were necessary to get the property ready to rent (with supporting photos).

Also, a good number of these prospective tenants (not all though) are currently living in hotels.Given the number of times that we have heard this over the past 30 - 60 days, we started wondering if the real reason has more to do with the recent ending of the eviction moratorium catching up with non-paying tenants.

RE Pro status is not something to trifle with, the IRS definitely does look into that and does frequently catch people trying to game the system. 

I'd definitely provide the appraiser with old photos and a list and cost of items completed to hopefully help him drive the historical value back down. 

Can you keep you cash flowing properties and still buy something in an area more likely to catch some appreciation?

You can catch direct flights on Spirit from Boston to Myrtle Beach for $90 one way.  30 minute drive to the airport, 2 hour flight, 30 minute drive to the beach... toes in the sand.

Are their listings detailed with good quality photos?

Maybe.I'll never catch @Jay Hinrichs

Are you able to attach photos to the post so we can see it?