Quote from @Cali Skier: There is no law anywhere that says you have to apply all the rules the same.

I have always heard it is beneficial to create an LLC to help separate personal assets from business assets. 

They took a week, ordered almost everything online and created a very 'beachy' home.

Finally, not all S8 tenants are created equally (just like any tenant).

In this environment I wouldn't put all my eggs in the STR basket.If your insentent on this then you must put a lot of effort into vetting the area, the rules, the property etc to make absolutely sure a given property will cashflow with conservative numbers and what your exit strategy per property is if they don't go as anticipated.

It can be better to force yourself to not visit the properties so you can create your systems accordingly. 

You'll want to consult a lawyer and pay to rewrite the HOA CC&R rules and an insurance agent to make sure you are covered. 

Given you state you "past (sic) all my 7-8 preliminary inspections" a judge may rule in favor of returning the security deposit since items in question (e.g.

I want to create capital (I have some in my flip, future sale of my flip, possible HELOC on my primary, and investment acct) and I want to put it into cash flowing assets.

I hope Mario can mitigage his losses by selling the property quickly to stop the bleeding, or re-tenant and refinance to less expensive debt but this serves as a case study on the perils of investing in lower tier neighborhoods.The amount of people on the internet and social media selling the false narrative of how easy it is to create wealth through investing in real estate, specifically these lower tier neighborhoods is upsetting.