What other numbers/factors do you recommend I look into?

Below I've copied text from Pub 523 - Selling Your Home-------------------------------------------------------------------------------------If you own or live in more than one home, the test for determining which one is your main home is a “facts and circumstances” test.The most important factor is where you spend the most time.

I would like to buy another house before the 2 years of rental income is factored in...what are some of my options considering we do not have enough to buy a house cash? 

(And I would factor in some expenses in your calculation like maintenance, etc). 

If you are buying their relinquished property, providing them  with a longer closing period could be a negotiating factor as it would allow them more time to find replacement property before their deadlines start to run.

In my opinion the HOA will never go down so you might want to factor in % increases.

The time factor with rising rents and values is one way they survive. 

Too much of a risk factor given what could happen and now that you know I think its an ethical decision.

Having the rent for an area you're not investing in won't help you much, frankly, since there's different factors that come into play to affect rent levels.

There are a lot of factors that will come into play when the IRS considers whether someone is an employee or a contractor, and "who purchases the materials" is just one of them.