Not a favorable direction in Texas. 

I own a duplex right outside of city limits - LOVE the Brickwall Tavern in town - if you've never been, do yourself a favor...First, let me share my "demands" that have served me well through about 3 years of renting my duplex right there in Burlington:Applicant must have current photo identification and a valid social security number.Applicant's monthly household income must exceed three times the rent.

Sell it and invest in a more favorable market.

To do so, more than likely (Again, assuming the sale is not invalidated), the HOA will file a motion for relief to get the property pulled out of the BK.

So long as the Mortgages get paid, it's usually not an issue.Going forward, I have scheduled salary increases that will shift my DTI significantly into my favor. 

Of course if I can’t find favorable terms then I’ll basically do what you’re saying, but it’s my backup plan

Even if you were in a market for favorable for investing (cash flow investing at least), house-hacking doesn't always pan out to be what people assume it is.

S Corps are no longer a "no brainer" and it's better to make an S election a year or two into the business than set yourself up from the start in an S Corp that is actually not favorable to you in this professional's opinion. 

The rest is set in motion by the title company.

I deal with contracts - non RE - frequently, and they always favor the person who writes them.