And as the buyer (my colleague) is now getting closer to closing it's starting to look like it might be worth just cleaning the place out and doing a very low cost rehab (paint, pressure wash and handyman repairs) for a quick sale.

Even in the laundry room?

Area is not a high end area by any means, all units don’t have laundry as well as no centralized air.

I have been reluctant to broadcast this information to the note investment community, hoping not to "hang out my dirty laundry" with colleagues or the note investment community.

Moved the laundry to the first floor from the basement, new cabinets, new deck, new siding.

What city/market is this car wash in? 

Some really interesting information I found was he isn't even supposed to be doing business in PA. i dont think hes ever made an honest dollar.

Are you able to deduct passive losses against earned income, or do you have enough passive income to wash against the passive losses in order to deduct all of the interest?

The answer this time was "...he took the trash bag off the return vent", and that the outside unit didn't look big enough.

.#2 - As @Theresa Harris said, just pressure wash it if you do anything, if you apint it, you'll be painting it again in a year or two.#3 - Never let a tenant do anything to your property.