Now you need to figure out how to find deals and pay for them.

Somebody could gift it to a wholesaler or previous buyer for a dollar and if the property is worth millions dollars in ARV and you get it for 70% of ARV minus your repair costs, then you should pay for it what it's worth.

Guests were literally paying any asking price for an AirBnB. 

An Attorney will help with creating an LLC.LLC is not required, may make getting financing more difficult.It may provide some asset protection.Most of the asset protection that you need will come from the insurance policy.Discuss with the insurance agent on situations that you are not protected.Have a discussion with an attorney if your extra concerns can be protected through an LLC.

If we put a tenant in the house we will have to pay the state back their $8,000 of assistance.Loan Balance: $150KCapital Required to Rent: $10K ($8K to pay out the state and $2K that I put into professional cleaning and new carpets.) 

#s based on duplex I’m being shown420,000, rate 6.25%Mortgage payment: 3271 + 225 HOA (increase $65 starting July) =3561Currently paying 1200 in rent + utilities.I know you’re going to scream at me for this.

Remember: Insurance companies want you to pay the bill and when it comes to their turn, will do everything they can to NOT pay.I would get clear on that piece before proceeding further.

The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!

I would say it is on life support because after refi the negative cash flow necessitates extra reserves.

Note that you may have more tenant-to-tenant issues to deal with though.As with any real estate investment, you pays your money, you takes your chances :)