Since you've had two water claims in a short period, it may impact your ability to get reasonably-priced insurance.

Essentially, the ability to have your purchase price + rehab costs <70% of the ARV, so after you rehab you can find tenants & then refinance to get all of your cash back.

@Michael Sontheimer-  most  lenders will use your  the  scehdule E  from your  tax returns for the past  2 yrs  to determine the   rental income that is usable for  qualifying for a loan ....so  if you have the ability to make this  schdule as  healthy as possible  - you might  consider this  ....if the  rentals  have been owned for under a year - the lenders  may use 75% of the  lease  amount  

Any contamination can significantly affect your ability to sell the property.

Would it hamper our ability to sell the note?

You've got ability to charge a higher rate for the property as a whole gives you much more appeal than having a vacation rental with shared space.

However, there is definitely a demand for the STR in these locations and there are many communities that do not have any restrictions on these rental minimum.Definitely inquiring about the community CC&R's and regulations regarding the STR ability is recommended. 

We do not accept partial payments, as that limits our ability to evict if necessary.

@Trevor Lowe Depending on your credit/cash reserves how will using the savings affect your ability to get a conventional loan?

CRAP.Let me tell you about wholesaling my friend.The key to wholesaling (and ANYTHING REI related) is your ability to find off market motivated seller leads.