So, if your sub2 seller declares bankruptcy ... and you did things correctly, you have a very short period of time to refinance.If your sub2 is not done correctly, it will be tied up in court you will have to hire a lawyer.

Is short term profitable in the Houston market and how profitable is it.

The other possibility is that your rental did REALLY well - it would probably have to be a home run short term rental to generate that much taxable income in that short of a time frame. 

Seasonality in the Short-Term Rental Florida Market remains a consistent phenomenon with minor variations each year.

I’ll eventually want to transition it into a real thing, but towards the direction of short-term and midterm rental.

There's a lot I'm not adding to this post for the sake of keeping it short.

As a first time host, I would recommend Avery Carl's book, Short Term Rental, Long Term Wealth.

I am exploring both short and long term investment as an out of states investor and trying to understand between Cleveland and Columbus OH.I have been learning these two markets are appreciating and have a good cashflow.As I am new to these two markets, I would like to learn which markets are providing a reasonable cashflow while up potential of appreciation for next few years.between these two markets, which ones are suggested?

I assume that once the foreclosure department and short sale department connect, they will opt to go forward with the sale.  

Short answer: noI haven't looked at your other posts, and I don't know anything about you, but this does not seem like a good idea