The final straw was when my property went into abatement after an inspection, due to the property management company's failure to address tenant requests for the exact items that caused the issue.

Good news is our land is where all of the next-door houses are (free houses, I think legal issues). 

The interior was outdated, the landscaping was overgrown, and several deferred maintenance issues were apparent.

Another issue is that many lenders do not lend below 630-650 FICO/credit score. 

The interior was outdated, the landscaping was overgrown, and several deferred maintenance issues were apparent.

I don't forsee any asbesto issues.

The issue I have seen with these types of properties is they could have two valuations - the value of the real estate which the structures will have little value and you have the land the other is as an operating business just like a bed and breakfast would have - real estate has value but it operates a business now you mention 12k / month but if someone also has to manage the property what is that worth and what would someone pay to manage a property like this?

As to the buddy I mentioned in Washington state it was the same scenario; he converted tax-free up to their standard deduction but above that he kept within the lowest tax bracket and paid the smallest amount of tax possible.Thank you @Basit Siddiqi for calling me out on this and giving me a chance to address my mistake; it's important people have the correct information.  

Hi Michael,Just to quickly address your comment here...

I contacted Zillow about this issue but received no response.