I believe this leaves you with more housing stock to choose from because you aren't in an area surrounded by Illinois.

It's not like you aren't given them access. 

Establish Clear House RulesLiving with someone in close quarters can get tricky if rules aren’t clearly laid out.

So before you get ready to attempt to rip your Landlord a new one, first go take it up with the local taxing authority, then go have it out with the insurance industry, then gripe to the neighborhood HOA (if applicable), then maybe settle your disputes with Home Depot/Lowes and any and all trade contractors.

It’s fair for the capital partner to handle these financial contributions since they aren’t bringing management or hands-on skills.Whatever structure you choose, make sure all contributions and profit-sharing are clearly outlined in a legal agreement to avoid any potential misunderstandings down the road.

They've mentioned they have asthma and allergies and that's why they're upset about have to live in a place that's being repaired, so I've offered to both hold off on the repairs and reduce rent to make up for the condition of the property, I've offered to have a contractor just rough in the drywall so that the studs aren't visible and to encapsulate everything, even though everything in the cavity was removed during the remediation, but they now aren't responding to my texts whatsoever.

There will be good investments to be made for several years and investments made today aren't going to hockey stick like they did in 2020-2022 so you have the luxury of time as you wait for the best opportunities from the best sponsors.  

You may want to do some independent research on the respective Housing Authority website as well. 

You need to reach out to the housing authority, not the tenant.

If you have one person managing 50 properties, you aren't going to get much service.2.