Leaving out auction and foreclosure costs for a second, when you write that check for $220k the trustee is going to pay BigBadBank the $175k they are owed first, then he's going to pay LittleBadBank the remaining $45k, and you will get a clean title as the process is going to wipe the slate clean.

I'd also look into property taxes and what is included with that $800 condo fee (that is really high though guessing it may include weekly cleaning). 

The limit on scaling is your deal flow (mine never was that good) and time it takes to perform the value add (I got fairly quick for example, my last rehab did all new plumbing, electrical, and flooring.  

To set the stage, I'm owner of a short-term rental property in the Poconos in PA and we use a property management company for bookings, maintenance/cleaning, guest management, etc.This past weekend we had a guest booking but when the guests arrived Friday evening the house had no running water, though it had been running fine earlier in the day when the Property manager (PM) was at the house to give a final check and leave the welcome packet.

The last time I stayed in one, I was charged a large cleaning fee and then met with a list of what to clean prior to us leaving.

-Both homes have new windows, kitchens, baths, flooring, electric, solar, landscaping, you name it, with custom tile and woodwork. 

I do however think as things clean up systematically, cashflow will improve and the benefits of low capX exposure in near term and appreciation will work out.

You'll likely want someone that can handle A to Z with marketing, pricing, cleaning, maintanence, decor, websites, reviews etc.

The property was being lived in....of course it could use a refresh which we also agreed to do a deep clean for you....fact of the matter is is that you chose to walk away from our agreement prematurely and ended up having to go about it on your own.

I know hosts have included additional cleaning fees for violations as a deterrent.If none of these solutions work, you could look into completely independent HVAC systems for the two units, though that would be a bigger upfront investment.