Also avoid certain types of rentals-the C and D class are more likely to have higher turnover costs as they attract a lower quality tenant.

Birmingham and Huntsville are very strong rental markets that provide good cash flow and appreciation.

The rental income loss cannot be included as income for last year (2018).   

The idea is to build multifamily rentals to hold for the long term.

A suggestion could be help them find temporary housing, such as a rental or a motel, and possibly cover the first month’s rent.

It sounds like you're growing your rental portfolio, so I suggest managing your properties like a business from the start.

Make certain that municipal code, or HOA, allows for a vacation rental in the area you are looking. 

No, you should not allow subleasing unless you really know what you are doing and how to protect yourself.If you allow subleasing, you lose control of who occupies your rental.

I trusted this agent because she was recommended to me by one of the MTR gurus/book writers as a high professional investor-friendly agent.I had planned to implement a mid-term rental (monthly) strategy, but I cannot do so due to HOA restrictions and high insurance costs.

If the property is rented, examine the current lease documents, rent roll and rental payment history over the last 12 months.