You did not fully describe your situation and what you did.

I realize I am not rich by any means but I want to describe my situation so an experienced REI can give me advice suited to my specific situation.

We just purchased a cash flowing property in this situation- the heirs just didn't want to own it!

Not sure if that has any bearing in my situation.  

Hi Josselyn,That's a tough situation to be in, but I admire your commitment to rectify the situation not just for yourself but for your tenants as well.

I may be able to help you, but depends on the situation, the property, etc.

given your situation i just don't think it would make sense to get into something that is break even or cash flow negative right now.and, it's very smart of you to consider different markets a little distance away.  

These new STR home owners then put their properties on the STR rental market are struggling with low occupancy and then make a tough situation worse by starting to drop their rental rates. 6 months later, they put the property on the MLS for sale.

I would recommend you get in touch with a real estate attorney-CPA firm, to help you walk through all the benefits available to your specific situation.

There are so many different variables and situations that arise when evaluating these old properties.