Depending on your facts and circumstances you may consider having a conversation with your CPA whether you qualify for a real estate professional election.

The realtor let me know that the property owner had recently excepted an offer the week prior, but the property owner told the realtor of anther property owner that was having some health problems and was looking to sell some properties. 

I guess a pandemic is an exception to the rule.

Of course there are exceptions, but to just go driving by, or scan MLS, or get a list of homes being foreclosed on, and think you’re going to be able to establish a sustainable business is just a dream sold by people selling mentoring services.

I spoke with an owner and he said he stays consistently book except for 3-4 months where he is only booked for 1-2 weeks.

However depending on the circumstances you could “drop n’ swap” from an LLC, effectively going your own route now as individuals.

Sure, your first month or two owning this home might be a real slump (I don't know about indefinitely - anyone who catches the virus now shouldn't be contagious a month from now, which means we'll probably see waves of people staying home, and then ideally life will return to normalcy after this initial panic), but these atypical circumstances are precisely why real estate investors insist on factoring in vacancy to your cash flow analysis.

There are limited exceptions to that for single member LLCs, also depends on your liquidity or ability to refinance as well. 

I'm not saying you're wrong about most of your statements, except that when people HAVE to move, they MUST move.

We requested a second Loan Estimate and everything remained the same except for the percentage rate.