The tax sale was massive. with over 1500 properties and was done in an arena. 

There is a massive shortage of supply and labor to meet the growing demand.

We know for a fact it'll lose money every month based on the numbers you provided (unless the rent is massively underestimated).

Does anybody know if homeowners insurance will cover the massive water bill (over 10k)?

It swings with the heavy weights, but isn't a massive beast of a city like Phoenix.

I pulled up the area on BrightInvestor and this area has seen massive growth with very little pull back over the past year.

Individual houses are having a hard time competing with the massive complexes that offer club houses, gyms, pools, walking trails, etc. 

The massive growth has gained national attention, and VRM Intel, the leading vacation rental industry magazine, is bringing together cabin rental companies, condo rental companies, short-term rental companies, homeowners, real estate agents, investors, and destination marketing organizations to discuss the latest information about the $13 billion vacation rental industry.

I would strongly recommend using guarantees and not have parents co-sign the lease as cosigners have rights of quite enjoyment (access) while guarantors are simply fiscal backstops ... our rule is if you are not living in the house, you are not on the lease (and vice-versa).Leases:  If you rent the entire house, the tenants on lease are all jointly and severally responsible for the obligations of the lease.  

Take MASSIVE action and find a way!