Overall, I expected to pay no capital gains tax seeing as how we lived in the house 4 years out of the +5 years I owned it.

I owe $345,000. after paying the mortgage and all utilities I would cash flow $500/month. 

@Michell ChaseEvery state you own property in you need to register as you will eventually have to pay state taxes as well

I want to pay that debt off and  renovate the houses.

There is no middle ground with rental property. 

Pay Dirt Flips is her new business!

The state is Florida.I did not consider this first mortgage an issue because I was simply going to live rent and mortgage free in this property myself, rent bedrooms, make good money and recoup my investment in short time (netting 4k income per month if you count not having to pay my current rent).

The extra fees for every little thing are a huge turn-off - $35/day for heated pool and be notified a week in advance OR pay another fee - no thanks. $75 for propane usage - I can go buy a small grill and tank for less than that - again no thanks. 

Don't get me wrong, I feel like a good PM is invaluable and have no issues paying one their 10% to properly manage my property and take away my headaches. 

I moved here for capital markets and real estate and it's the #1 net migration county in the country I don't look anywhere else and I would recommend you don't either. look at ground up construction. everything is killing it down here.