Demolition has its special tax treatment however, and I would not tackle it without profession guidance.

I charge a Tenant $100 for every treatment and it sometimes takes two attempts to remove the odor.

So Red-Flag for sure, but much more about your "team" or lack there of, then anything else. 

I agree with your other reply that $10,000 is a paint job today, made me chuckle.. although with time you do get preferential treatment from the subcontractors you employ… but again I like that your rehab budget is this high.

We have increased management/cleaning systems and paid for monthly pest treatment to stop this from happening again.

(They spent most of their retirement money paying for son in law's cancer treatment.) 

REP status does not guarantee treatment of rental income/loss as non-passive, to get that you need to document 500 hours of property management.

The property is in FL.I'm pretty sure the $500 won't even cover the cleaning costs and AC treatment.

Do you have annual termite treatment or do you just wait and tent every 10 yrs? 

If you extend past 30 days, it impacts your credit sore