Is it staying long-term in a place that someone has died in that freaks people out?
(I am aware that I'm evil for bringing this up, but it's one of those things that has always puzzled me.) Most hotels have had deaths. If you've never stayed in a room that's had a death, you've likely slept next door to a hotel room that's had at least one death. And if you stay at casino hotels, it's likely some of those deaths were from

, ahem, exhertions or were suicides. (You got yer happy deaths and yer not-so-happy deaths.)
If you've ever slept at a quaint B&B in a very old house, you've most certainly stayed at a place where other people have died.
So what's the difference between that and buying a house someone has died in. For that matter, doesn't that limit you to only brand new houses?