Unless you or your spouse is a real estate professional, and assuming this is a traditional long-term rental, the activity will be passive and losses will generally be suspended or carried forward. 

I suspect what you're facing here is too low of a rent but that's gut speculation, not math.If the rent proves out to be right for your area and the cash flow is still as light as what you describe, in a market like this selling would bring on significant equity capital for a more carefully planned deal. 

Remember that the properties you are looking to wholesale (distressed) shouldn't qualify for a traditional mortgage loan.

Hard money or non traditional lenders like Finance of America (good rates and programs, but service level sucks).

When it comes to accessing loans, a traditional lender will typically need to run the Debt-to-Income Ratio along with Credit Score to qualify you for a loan.

I remodeled an apartment and when the tenant called the electric company to put the bill in her name we found that her apartment is connected to the House Meter for the laundry room and outside lights.

This is why you need to check with a lawyer first.If the lawyer gives you the green light to evict, ask them about remediation.

I agree the next sentence goes on to address a current owner that may already have more than three, which seems redundant in light of the first statement...but the way it is written the plain reading is that three maximum in the entire development applies...The subsequent statement about three per owner only applies to current owners at the time of this being passed...it's an additional stipulation in light of the fact that some owners at the time of passage may have already been in exceedance of that requirement.

My wife and I are building our Airbnb rental business and also have been heavily involved in traditional real estate.

It’s remarkable that the Austin metro’s pricing is nearly 40% higher than it was last year:Despite the incredible YoY increase in prices, the decline in closed and pending sales compared to this time last year suggest, in light of the previous month’s numbers, that the market has found a stabilization point and may be reverting to its more predictable seasonal behavior.