Personally, I wouldn't open up a home that isn't in good repair, from a liability standpoint if nothing else.

The person I would seek advice from is a CPA about this. 

Personal money How did you add value to the deal?

Over the years, with personal investment alongside investments from family and friends, I’ve been able to build a small portfolio of apartment buildings with a focus on cash flow through strong operations.

They say the average amount of water per day a person uses is 80 to 100 gallons , Lets call it 60 to be conservative .

But now with the joy and headaches of non-metered units, trying to wrangle 3 different set's of persons into playing nice, etc etc.. 

Additionally, if your goal is to maximize personal financial benefits, consider profit distributions from the property-owning LLC, which may provide tax flexibility depending on your situation.By adhering to FMV, maintaining proper documentation, and structuring the lease agreement carefully, you can optimize tax benefits while staying compliant.This post does not create a CPA-Client relationship.

These are my personal takeaways:Real estate has been more passive for me.

Instead of debates and personal opinion, look for proof https://www.ladbs.org/docs/default-source/forms/plan-check-2017/single-family-dwelling-duplex-plan-review-list.pdf under G (Interior Env) which defines the minimum requirement of a habitable room (aka bedroom or bathroom).

Personal money How did you add value to the deal?