The way you described the deal in the 1st paragraph makes it sound like your "partner" is basically a lender.

OP Google Dwags  security systems for houses.. only way to keep folks out.Also as @Drew Sygit Drew suggests in D class or deep hood areas which is what your describing no one puts in mechanicals until the day the tenant moves in or MAYBE the day before ..

If the business sale proceeds or K1 are considered passive income, can the strategy as described here with my wife (no W2 income) as the active manager of an out of state STR property, work to offset the business sale proceeds?

@Jill F. has done a good job describing some of them here in this thread.

My investors have bought plenty of deals with better margins than the one you described.

If you use Hospitable for comm mgmt, Turbotenant for all tenant mgmt related items, and FFinder/your own website/Turbotenant for lead acquisition -- how do you describe your work flow across these?

I invest in a couple states and I also am a agent in new jersey. my rule of thumb for a client is when they say I'm hoping for in a sentence describing a property I dive a little deeper into there goals because it sounds like they are trying to fit a square block into a round whole.

What we are really describing is “contract flipping”.  

@David Sussman I do it the exact way @Tim Simmons describes.

They paid the rent and you haven't given them an opportunity to fix the other issues.You may want to reach out to more experienced investors to understand what having a rental is really like because what you described is fairly normal. 30% of our portfolio is late every month but your only concern is if they actually pay.