Furthermore you can vastly increase your returns through leverage using a non-recourse loan but that will definitely trigger UBIT but again the numbers can still make a lot of sense. 

In my mind you MUST have the cash to these mortgages off if your going to engage in these transactions.

@Placeholder PlaceholderOne word of caution I would advise: If a community or local government is enacting restrictions and also regularly enforcing them, then its often a reflection of the local community sentiment which increases the chance of a neighborhood or nearby resident calling you in if they think you may be running an STR.

However, to ensure your plan remains compliant, including plan document maintenance and plan operation, you should engage alternate service providers.

Value and rents should eventually increase to turn cashflow positive and build your wealth.You're next learning experience will be, now that you are out of day-to-day management, how will you be able to handle the inevitable expense challenges?

Other most common factor: Family Size increases due to marriage or having a child. 

Once the property is sold however we will be ok and our incomings are due to increase the following year.

Quote from @Greg Kasmer: I'm curious as to your comment on getting back in when the bottom has been "somewhat defined" - Is that defined by rents stabilizing and/or increasing or another metric?

the property’s rehabilitation is scheduled for completion in 2025 and the rent will subsequently increase, can I proceed with a cash-out refinance based on the current rent roll?

There has always been many questions as to if one needs to be licensed to engage in COMMERCIAL mortgage brokering/origination or RESIDENTIAL INVESTMENT property mortgages.