Most people with short tenancy just need items stored for a few weeks and the free first month types of ads mean you won't actually get paid at all from that tenant.....or worse, they'll come back month #2 saying "it cost so much to move, I just can afford to pay Xamount for this unit.

I also did a BRRR on a townhome I bought as a short sale in 2012. 

Short answer, if the HOA foreclosed and now the mtg holder is foreclosing, you will indeed get proper title. 

Ultimately, I'm not too concerned with short term price fluctuations - it's about having the liquidity to survive a 3-5 year recession and the associated declines in rents.

Well, I need $25k to get the job done, which means I'm $3,000 short.

I assuming you’re using a PM that collects that short rental tax?

If it were a short term deal as an investor I would expect a higher rate but 7% seems pretty fair for a long term deal. 

Agreed, in the short term it will hurt the market, but it will also filter out those that want to make a quick buck and think it takes 1 week to flip.It’s like a lot of industries.

The 3 we've short-listed are located in Killeen, Temple, and Elgin.

If you bought a property with the intention of renting it, then got an offer you couldn't refuse and sold it within a year it would be taxed as short term capital gains.