This also doesn't take into account how long it will take to find a long term renter, I have been told by numerous PM that the demand is there and rental vacancy is less than 1%.I am looking to use this home for long-term rental and have found that the average monthly rate is between $1,500-$1,800 / month.

I have received numerous applications and several people meet my criteria.

There were few movies made using the court yard.

This reminds me of the movie “The founder” ...

Every city has its own mix of 'good area' and 'bad area' thing going on to some extent, but the bigger picture needs to be solid firstly.Beyond that, I think you're touching on numerous different things here but my mind would be on getting actual numbers/data. 

She gave the example of a friend and their kid betting on whether they'd like a movie or not.

There is nothing more required.There are numerous options non of which would involve recoating the bathroom.

Yes, commercial investors can have numerous loans...totaling in the hundreds of millions. 

I never thought poorly of my LLs or PMs, unless I made numerous repair complaints that were never addressed. 

Enough to cover you for a complete loss and potentially getting sued for numerous reasons.