Cutting unnecessary costs could improve profitability.Holding onto a property with a low interest rate in a growing market like Tampa is a strong position, even with limited cash flow.

Skip forming a corporation for now—it won’t protect you from personal loans, and it adds unnecessary costs.

@David Woodside The 500-hour rule allows you to treat rental losses as active, enabling you to offset other income and reduce your tax bill significantly.

I'd focus on deciding what you want to do (flip-high risk, but potentially high return...or large loss; short term rental-more work, but higher return than long term rental; long term rental-less work than the other two, but lower return).Once you've decided which you want to do, then focus on getting the best house to meet your goal. 

If the didn't do that then they have converted to LTR or MTR rentals at a steady monthly income and have the tenants take over the utilities which offsets the loss of more income.

However, unless you're doing this as part of a BRRRR strategy, you may end up paying closing costs twice and incurring unnecessary interest on the HELOC prior to refinancing.Additionally, conventional loans often have seasoning requirements of 6-12 months, while DSCR loans typically require only 3-6 months.This post does not create a CPA-Client relationship.

Quit comparing it to other forms of investing because you are wasting your time and, at this point, creating a lot of unnecessary negative attention to your idea. 

Because your second year is likely (oops, I did it again) to show a net profit instead of net loss.

I expect greater than 10% just for the loss of residential F/f financing.at 10% difference, or even 15% difference, coop would be up there with lot splits on sophisticated value add.  

I have loss GOOD TENANTS because they shared a porch with people they did not care for.