I plan to stay overnight for a weekend trip in the next week or so. 

Water bills go with owners but it's sewer bills that stay with the property.

One way would be to get the real estate under contract, then bring an experienced partner in who also has access to capital, and stay in the deal as a minority equity partner.

I like to stay in the working class areas as they make enough to pay the rent and bills, but don't have the financial discipline to save enough to purchase their own home. 

I'd also recommend staying away from townhouses if you can but understand in some markets they are more common than others.

Last short term rental we put on the market was booked for a 30 day stay first day on the market.

Stay in and be part of this 721 or lose my investment most likely.

Also if any NJ agents that are familiar with using these and transitioning out of them can reach out for some advice and education that would be great seeing that I will need an investor Friendly agent over here to help guide me through everything.

Since this situation was so egregious (IMO), I would either boot them out now, or at least have a serious talk, real serious....If you're going to let them stay I would just get a really deep cleaning done, maybe a couple, and then replace carpet after they're gone.

Regarding S8, the leases are 1yr only, but S8 tenants tend to stay longer vs cash paying tenants.