They did not install any carbon or smoke detectors. 

Whatever it is you fine folks tried to implement it is backfiring.

The fastest growing startup ever (Zenefits) just fired its CEO, implemented a hiring freeze, and was written down by Fidelity 50%.

My advice may be too late for you to implement, but I would highly suggest offering them Cash for Keys.

Sounds to me like you need to implement a new policy- rental inspection every 6 months.  

your first choice which is referred to as "house hacking" is a very popular concept alot of investors have started off doing and/or implement today.

As @Cave Johnson mentioned, an agreed upon cost-plus for extras is viable and oft implemented especially in commercial work.Regarding pointing out problems or work needed... if you're not qualified to be walking the project yourself on a regular basis, hire someone who is (e.g., owner's rep).  

If not ask them if you could send them resource to learn and implement them.

I would love any advice on systems that experience and seasoned wholesalers have implemented that consistently brought results.I understand the need for persistence, as well as, a somewhat mechanical plan that I need to develop.

Here is a link for all the details. http://www.meetup.com/PacificNWRealEstate/If you can't make that one, we have it every 3rd Monday of the month.Best regards Kevin Carbon