These logs regularly end up in the Tax Court and are usually destroyed upon review.

We'd even be happy to move them into one of our (future) properties and just let them keep all/most of their rent income as free cashflow. 

In doing so, bear in mind that the cost and admin of a corporation is higher and that the tax treatment is different:1.

The home burns and the incredibly over taxed CA FAIR plan has either gone bankrupt or takes years to pay out.2.

You'll get pretty good depreciation when it comes time to do the taxes.

1000 out of 1000 will say: “I rather keep it”.Now take 1000 people from your favorite Tax Lien list and ask them the same question: Do you want to sell your house or would you rather keep it?”

Quote from @Jeff Roth: Hi Lina from Texas-Congratulations on your interest in investing in mid-term rentals and you are wondering how and where to get started.I get this question frequently from investors.Sometimes and investor is looking to keep their property cashflow positive as insurance and taxes have squeezed cashflow by turning units into mid-term or short-term rentals.First off, ideally, the property will cashflow as a long-term rental should something disrupt the mid-term rental model.You will also want to have the property be near where there would be a demand for mid-term rentals (hospitals, universities, research centers).Monthly rents for mid-term rentals are about 20% (+/-) higher than unfurnished similar long-term rentals.There are property managers that will manage mid-term rentals for you and I always advise my clients to use property managers to keep their investment as passive as possible and for compliance issues related to Fair Housing Laws and local regulations.To Your Success! 

.🔹 Great for Sellers & Investors – Motivated sellers can turn a vacant or hard-to-sell property into income while investors secure future deals without a huge upfront commitment.🔹 Ideal in Any Market – Whether home prices are rising or falling, lease options allow you to lock in today’s price while benefiting from future appreciation.Other creative strategies—like seller financing, subject-to deals, and the BRRRR method—can also open doors, but lease options remain one of the most powerful, low-risk, minimal cash out-of-pocket ways to build a portfolio.

At least now your tax basis is $220k ;-)  What was the extent of the repairs?

I would look at expanding your lead generation efforts to include creative financing options, absentee owners, tax-delinquent properties, high equity and probate deals that are off market.