Here's a map comparing income tax rates by state.Rent control: Never invest in any city that imposes significant limits on your ability to manage your own properties.

This is unfortunately the downside with hiring full-service property managers; you lose complete control of your unit and finances.

Later, I received an email from VRBO stating that they could not lift the restrictions if we could not prove a disaster and that the cabins had actually flooded.These folks are out of control.

Further, these “asset protection” methods are under constant creditor attack through the courts, meaning they are probably of benefit only a short period of time, UNLESS, true CONTROL of the asset is given up.  

I've been told both extremes by several different people, but that's crazy to hold the agent responsible when they're forcing this arbitrary rule just so they can go after agents and brokers for something they had zero control over.  

I swear I can't control it... there's this sarcastic voice inside me that just takes over.'

Just take what they have taught you to date and put your own team together dont rely on these companies that say they will plug you into their network.. it does not work that way. there is only so many contractors and so many props and jobs to get done. you need full control of your OWN team. 

Your lease agreement is going to control your situation, unless your state statutes have something on point (unlikely to your situation though). 

What I struggle with today is how to attack it.Option 1, which was my original plan, was to get control of a $1-2MM property using mostly borrowed and possibly silent investor funds.

Next year the HAP payment could change entirely and you have no control over that.