@Ted Fall @Ellie PerlmanTed: You need a good underwriting analysis to help inform your decision making.

While landlords hate to drop rents, and resist it like the plague, make no mistake that during a downturn your income will fall even if you don't drop rents.Vacancies will increase, credit loss from non-paying tenants will increase, eviction costs will increase, you'll have to offer concessions like free rent or temporary discounts to attract tenants and keep the property full. 

I believe that this property falls in the Woodlawn area.  

The fence in the backyard is starting to rust and fall apart. 

@Jennifer Rysdam that sounds like it would fall under "lease violation", if that's what your lease states.

Is it safer to wait two years for the recession and therefore houses to fall in price or is that blown out of proportion and the current state of real estate is still going strong?

Hopefully (no guarantees) your tenants just paid for two years worth of appreciation, and you still fall within the 2/5 years of primary residence and avoid capital gains tax (talk to your CPA).

So during months of searching and falling in love with numerous houses, we can across an old FL house that had the original pink tub and toilet and terrazzo floors throughout the whole house.

Tenant falls and breaks their leg, decides to sue you.

The fall started when the city passed its anti STR regulations.