Saying there are three people living there when only one is on the lease is good to know, but hard to prove; getting video documentation of three people consistently entering/exiting the property substantially alleviates that difficulty.During your due diligence process, you probably obtained a copy of the existing tenant's lease to review.  

Potential Solution: is cosign with a close family member to alleviate payment issues.2) Wanting to close her storefront and run the business in our house.

Now...drug related from 2014, that's a definite NOT.

You can't get an apartment painted for $300 by anyone other than a drug addict.

I think if you did this I would just give pool and hot tub access to the people in the main house to alleviate any confusion. 

Crime and local policy is forcing people out of the area leaving only the bad things behind. people don't want to move to an area filled with crime, drugs, and homelessness.

As a travel nurse, we have to do all kinds of background checks, drug tests, and other compliance items.

@Marcus Welson, A disregarded LLC alleviates any issues transferring title before, after, or during a 1031 exchange. 

Like @Alan Asriants and @Matthew Paul said location, location, location, an area during the day and night are very different things in Philadelphia.While the cashflow might be great, the greater the risk the greater the reward, but there are still plenty of other areas where you can get 200-400/month without being near the largest open air drug market on the east coast.

Like with any rental, tenant screening is crucial in this area because opioids and other drugs have hit the area hard. 2019 has been my first year without an eviction so it has been a learning process.