If everyone doing wholesale deals operated as intelligently and with as much integrity as you we would have no need for a regulated real estate market.

OR is it the State of CO and FL that are wrong...or other states that are regulating the practice?

It is always difficult to start some new activity, but you have to do small steps to your goal - make savings, find a responsible real estate broker, get familiarized to all regulations and rules of successful investment strategy, so just prepare to face numerous difficulties, especially with regard to your situation.

Laws change, HOA regulations that can hinder your ability to run this business.   

Since the assets are held by their irrevocable trust, instead of the client / recipient, the government does not count those assets for qualification purposes. 

And also the opposite when I sell a used work vehicle I sell it usually to a worker or subcontractor and I hold the note and he/she pays me kind of like private buy here pay here As long as I don't break the regulations for the DMV about how many vehicles can be sold per year I'm OK

Have you studied your state landlord tenant regulations.

Government wants you to report the schedule E.

But if I get a feeling this is not going to change, I would hand them a notice to cure the default and if they don't, begin the eviction process per your state regulations.

Specific areas to look in would be Beacon Hill, Government Hill, Highland Park Estates, Denver Heights, Woodlawn Lake, etc.