Then I get to wait for someone to accuse of me of disparate treatment of a protected class or, preferential treatment to another class.

My understanding is that the tax treatment is the same as if I were using that amount to buy a separate rental property.

you don't want to turn your primary and its take free equity into a rental .. the tax free sale of a primary is the number one best tax treatment in my mind.. if you want to move on sell it take your money tax free then go shopping for rentals or house hack or whatever.now if there has been no run up in value that creates a tax free situation vis a vi equity.. then probably does not matter

Is there any way to switch from treatment plans to public utilities?

But then again if there is a big tree leaning over that brand new roof, or if you often get significant hailstorms and the like then the equation may change and you would want to be setting aside more for expectable damages/treatments. 

NFL home-game weekends would be nice also.And the other end of the fun-misery spectrum, you have some of the world's leading cancer treatment centers just down the street, and so there are always people coming in from out of town for long periods of time for treatment. 

Could you shed a bit more light on the tax treatment of Schedule C vs E in this type of scenario?  

The difference between the two treatments is whether or not you pay the 15% self-employment tax on your profit.Still, I side with Ashish in recommending professional help, as my suggestion needs a more detailed discussion before implementing, with a few pitfalls to address. 

He told his doctors that he didn't want any more medication or treatments and will no longer be seeing them. 

Your absolutely right though, need to get that termite bond and ongoing preventative treatments.