This is why central banks act as lenders of last resort and governments provide deposit insurance and equity injections.

Just kiddin'.Anyone going through foreclosure has several things going on: 1) They are under a lot of stress, 2) Everybody is mailing to them and knocking on their door, 3) They are embarrassed, 4) They feel helpless, 5) They have the belief that winning the lotto will bail them out at the last minute, 6) It's the bank's fault, 7) This can't be happening to them, 8) They don't want to sell, 9) The house (even though it has a leaky roof and hasn't been kept up) is worth more than market price, 10) Believe you are there to take advantage of them, 11) Believe the government should do more to protect them, 12) Believe that their payments reduce the principal directly proportionate to their payment (Have no concept of compound interest, what Einstein called "the 8th wonder of the world"). 13) They can file a Chapt 13 bankruptcy at the last minute and keep the house if they have income, 14) They will wait until the day before the sale and call you if none of the other solutions work.Your opening comment should be " I buy houses in the area and I was wondering if you or someone you know might be interested in selling".

How do you get around this government implemented hurdle?

It is exactly the same as any tenant except you have a additional notice to your government tenant as well as the resident tenant.If the government does not approve the rent increase your resident tennat moves out, same as any tennat, and you screen for a new one.Again this is the same with giving notice to any tennat.

I use WSFS for most of my investments, but I have heard good things about Franklin Mint Federal Credit Union and Iron Workers Bank.

Ive challenged them on this since there was not vote by the homeowners, that im aware of, and they essentially quoted as 2008 law  that says the the board can: (18) Exercise any other powers necessary and proper for the governance and operation of the association.The reason they have implemented is that there was a bad landlord that allowed a tenant to rent that eventually got busted for drugs.   

Government runs the school system and the government is a business.....The profits from the high tuition benefits the schools, the government, and the banks. 

An LLC is established by state statute, for federal taxes you'll be treated as a disregarded entity (if you're the sole member) or if you have multiple members you'd be treated as a partnership, or you can elect S or C corp treatment. 

When the government starts to take that away then we are going to have problems as a landlord.

I purchased a 3 unit in reservoir hill, but was also looking in Bolton hill, Charles village, and federal hill.