If your rentals are reported on SchE then you should be fine. 

Read any Consumers Report article on warranty/insurance, they tell you not worth it.

However, it turns out that they lied about the credit score because my credit report now shows "this loan has been modified" even though it was never actually late.

Report it ASAP and you may be able to rent it for Aug 1. 

My understanding is that the money has been reported on the K1s as profit, we've paid taxes on it, and we should have taken owner draws. 

I do have a decent screening process and uncovered that their reported income was nearly twice their actual income.

REPORTBP Moderator- before you delete my post, all identifying information has been removed from the report- have a nice day

Either way read over the report completely and ask questions if you’re not clear.

Any insights, thoughts, ideas, or advice always welcome as well.130 Woodlawn Dr **(link to listing above for reference/non promotional purposes only)I ran an Airdna report for the address to give an understanding of the local market, but would love to hear insights on pricing given the uniqueness and potential market opportunity. 

I already got my first owner occupied loan and used up half of my savings in doing so. my partner  has about $200K but reported losses last year.