Of those two, I actually like the first one better because you have a competitive advantage to that market and the amenities you could provide.

I really want this property for so many reasons and don't just want to just walk away.Yes.

The term "reasonable" is going to be redefined.

Reason being is that these are older properties and rough tenants. 

However, you can actually end up in a spot where you have no Federal Income Tax, but you still owe Self Employment Tax. 

Quote from @Fred Scott: Sunrise Capital Investors - Mobile Home Park Investment FundI've seen a few posts about them here but none of them actually talks about what the actual annual returns have been.They are advertising heavily for passive tax deductions which is fine but what are the actual returns over a period of (say) five or ten years?

For a condo you can/should check the county assessor for land value  (you would apply the same allocation %, don't use their actual number listed) Also check your HOA documents.

My question is when we see the monthly statement on the management company’s portal, we don’t see the actual booking (from Airbnb or vrbo).

Keeping 8 percent on security deposit would probably be ok because it is actually rent because tenants did not pay.  

There are only 2 ways, as I see it in the current market, to get actual income/cash flow from a rental property - a paid off long term/mid term property or a well bought short term or rent by the room rental.