Can anyone offer advice or give me an example of how to formally define such a situation?

The reason I ask is, what if you started non-renewing the Sec 8....granted you lose that "guaranteed rent" (heh, ask me about THAT sometime), but if you can get it up to market rent gradually while reducing expenses, this deal may still work.3) Cash flow & NOI are key components that determine the market value of multi-unit/commercial property. 

Define your Why. 

Someone defined as a 'real estate professional' can us the depreciation deductions to offset, ANY other income. 

You need to make sure you have clearly defined goals prior to getting started and make sure this property fits into those.   

I am seeing prices for light rehab (some Sheet rock, paint, grout, caulk, moldings) for about $3,000 for a one bedroom unit- I mean there are so many ways you can define what is light rehab vs medium etc- but I got a few quotes for painting/some sheet rocking, new moldings, etc and that seemed to be the range (like 2500-3500$ for a one bedroom) including materialsplus an additional 300$ to clean out debris, and window repairs I'm still waiting on separate estimates for but can share information on what I get back :) 

The Florida law defines a non-homestead property as a property not used as a primary residence, such as rental properties, second homes and commercial properties.

I recommend you visit this site - https://www.hopb.co/nevada/ - and do a little research into what Nevada statutes say/define "reasonable" where fees like what you are being assessed are concerned.

Define buying criteria that will get you to your goal and stick to that criteria.

Profit in real estate comes from cash flow, appreciation, and principal reduction...cash flow is only one component of it.