@Darrick LoweA few things to check(1) Faulty Window - is this window in direct sunlight? 

If FHA applies to this unit it would be a violation 

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I have considered designing all 9 or 10 homes and "pre-selling" based off the renderings and floor plans I design, to at least sell a couple to prove the idea before we break ground.I want to work directly with private investors, not traditional financial institutions.

We sourced this deal through a friend who contacted the owner via direct mail.

You'll then need to apply for the Certificate of Occupancy, pay the fee, and then wait for the inspector to come out and tell you what needs to be fixed. 

This will shape your investment direction, as one size does NOT fit all!

Jekyll during advertising and showing, but as soon as someone actually applies, I turn into a very skeptical Mr.

The 1% rule is a rule of thumb, like you said, which means that it will not apply in all situations.

The Florida State Legislature is considering a pair of companion bills in the House and Senate that are intended to, amongst other things, preempt the regulation of vacation rentals to the state, but even if they were to pass, preemption would only apply to municipalities that did not have their own vacation rental regulations in place prior to June 1, 2011.