Patience and precision in your pricing strategy will pay off.Active inventory has increased by a substantial 37.75%, providing more choices for buyers.

Mortgage payment is 867 but I pay 1k a month on that and 500 on utilities so my total burden is 2100 with tax during the seven months it’s a vacation rental it does 3-4k which means that I’m breaking even year round as it is. 

Also, to clarify an LLC shields the assets within that LLC from inside and outside liability, whereas an umbrella policy only pays damages once you've already been (personally) found liable (if you have the investment property in your personal name). 

If they do not pay their portion (if they have one) you say, " hey you are breaking the rules of your program, if you do not pay you will " lose your free ride ". watch how fast they pay.

You can offer to lend the seller money to stop the foreclosures. 7 or do a lease with an option to buy - making up the back payments that would be considered you advance lease payment.Always look at the property if you have intentions of bidding at the auction (this can be tricky because you need to do that with the owner's permission - do try to build a rapport with seller  - also look at the foreclosure suit to find out what the bank is looking for and if there is a second mortgage or other liens.At the court house steps when the auction take place you need to be well prepared with your certified funds but more importantly you need to know the fast sale value of the property - you don't want to pay retail.Get to know your competition - there will be professionals at the foreclosure auction looking to capture some serious equity.

The tenant is currently paying less than current market rate, and we are only asking for an increase of 6%.  

There are brokerages out there that allow you to pay by transaction not by commission. 

But reality is I'm paying 100s more in taxes each year, so I've got to raise the rent to $700.

If you make this a balloon payment in say 5 years, you've helped your cashflow, and you can refinance to pay out the balance of the 2nd mtg.I do have to ask though - you seem quite emotionally invested at this point - what are average house prices in this neighbourhood?

You could refer the person to the state attorneys office because they knowingly had no intention of paying rent (or security) in that case.You may want to stay away from credit card payments since there can be a dispute by the renter for up to 6 months.