But if I live there and rent bedrooms, I also don't want the husband to come knocking some time in the future saying "hey, you owe me part of this back rent as I'm a priority owner". 

Don't knock the hustle, just knock the operator.

New faces were EVERYWHERE and it quickly became a head shaking exercise weekly as we had max bids (and if anything, you'd think an experienced person could go a bit higher than a newbie) since almost certainly we could get it done for less and I was still part time then, even the full timers who could knock em out real quick and efficiently were amazed at how high so many went, there was NO WAY there was profit there.I did the same thing, moved upmarket, but if it weren't for years of experience and years of reading about what those buyers want, not just in near perfect quality, or perfection on the high end, but also the features they want.

From your post you are seeking to essentially knock down the house and build brand new.

Not knocking your market, just giving you a warning that the market you pick will dictate how quickly you get your money back after putting it in.  

On the loud music, you have to be able to knock on their door and say, "Listen, the music is so loud we can hear it through our walls and we can't sleep... you're going to need to turn that down after 9pm... or whatever the right answer is to you.  

Oh YES, I recall one where the low life tenant knocked the garage down with his car, YES took it down because he was being evicted LOL. 

For #5, the apartment industry has painting contractors that paint units (including SW paint) for low prices and they knock a unit out in an hour or two. 

There is also plenty of other ways to get business, you can do open houses, use social media, door knock, etc.

In my case, I always tell prospective tenants ahead of time to expect an email from this site, and so far (knocking on wood) no one complained.