I won't go on with the novel, but he are some other red flags: 1) When I showed up to the acquisition manager's house, his wife was running late as she was coming from two eviction hearings at court that morning. 2) At one point on the tour, a young man dressed in stereotypical ghetto ware approached both the PM and Myself in front of a house (I wasn't sure if he was going to try and sell us drugs or what) and said that we didn't look like we belonged in the neighborhood and "are you guys investors?".

Got the termite treatment done with some help, carpets removed, bathroom demoed, measured for windows and doors, working on putting a complete bid package together for Home Depot (If you spend more than $1500, you can request them to give you a bid price which is usually a bit cheaper). 

I have video's of bugs, reported everything from the bugs to drug needles in the kids playground, and can prove there was a murder across the street just off the property.

When a specific infestation is discovered a more intense treatment will need to be done to bring it under control.

We didn't have contracts in place with many vendors, such as: lawn care, pest control (including white fly treatment), attorney, or irrigation. 

I can offer a list of services I would expect:Leasing fee covers:PricingMarketingMedia advertisingMember of Multiple Listing Service  and syndicated to numerous internet marketing toolsRealtor referral networkOn-call 24 hours including weekends and holidaysShowing, screening and negotiatingCredit reportsThorough background checksDocument preparationManagement Fee Covers:Move-in/move-out coordinationMove-out inspections with digital picturesEnforcement of lease termsTenant public relationsTimely rent collectionComputerized accounting and property management systemsFunds managed by a trust accountTimely disbursement of funds to ownerMonthly statements covering all activityCPA ready annual consolidated statementsScheduled property surveysMaintenanceProperty Repair Services24 hour on-call service for emergency repairs including weekends and holidaysRepair “help line” service at no costReputable maintenance personnelVolume pricing on supplies and servicesSpring A/C service and lawn treatment at owner’s optionUpdating, decorating and refurbishing if desiredInstallation of security devices (locks, etc) as required by law

When a property averages less than a 7 day rental period over the course of the tax year and qualifies as a non-rental activity, and non passive tax treatment, how is the rule about personal use affected?

The correct treatment would be that each of you would have been reporting a % of the activity of the property as tenants in common in the absence of any other ownership structure.  

Professional, and amateur squatters, or drug addicts, is what most of them are.

I wouldn't want anything commercial mixed with rental.. to much foot traffic, Laundromats are huge utilities to run and to keep up with mechanical fixes.. and lots of stupid sit in and wait traffic.. big drug potential unless you have a staffed location.