But what it does provide is a framework.

I'm considering partnering with a non-profit that would manage the sober-living program; with me just providing the house passively for rent on a per bed basis. 

Could VRBO users from Michigan provide some clarity about the topic of sales tax/lodging tax collection and payment to the state.

Quote from @Burke Atkerson: With over a decade of real estate investing experience and over 100 flips, I now provide private money & hard money loans.

I will look into some of the suggestions provided!

Hoping that someone could provide some guidance on this so I can decide how to proceed?

Contractors, unless you have a working relationship with them, normally do not want you bouncing ideas off them.Understand what their hourly rate is, have a discussion with them that you are okay with paying them an hourly rate if they walk the property with you and provide you a scope of work along with an explanation of what you can/can't get away with in regards to improvements.ask them if you go with them, if they can credit you the amount that you paid.Once you develop a working relationship with a few contractors, you can bounce ideas off them and expect quality responses.I do not invest in New York.Best of luck. 

At the same time, dispute the late payments with the bureaus and provide the payment records showing the payments were made on time if asked.

Quote from @Roger D Jones: SamEveryone here is providing great points to consider and if you were my son I would say that at 360k this 'dog needs to get put down'. 

I would provide the capital and otherwise stay passive, but hopefully grab better profits than private lending?