In my experience in MO, land bank properties are very low priced (these are generally properties/parcels that weren't sold at the tax auction), but they often have significant tax liens on them that must be cleared in addition to the "sale price" AND they require a significant amount of rehab in order for the properties to be inhabitable. 

STRs do not require you to be a REP in order to take losses against ordinary income.

Banks and credit unions might have lower-cost options, but they'll likely require more equity.

You could also use a Fannie May Home style renovation loan which a conventional loan and require 5% down vs.

The bathrooms are very narrow so I was wondering if there's a requirement to have a bathtub.

And this might indeed require some time to pass before doing that.You could still create a single member LLC with either you or your wife as member. 

You can give them whatever notice is required by their existing lease to enter, go in or send your pm and take photos to use to compare for your records on move out.

I wasn't aware of the law requiring a contract with an agent.

I suspect it's an old line that failed and required replacement.

Most if not all of these properties require SIGNIFICANT cap ex rehabs and conventional financing won't touch them; you'd likely need to go the hard money route at 10-12%, 2 points, 12-18mon turn around.