Your key phrase is "Responsible RE investor." 

Hey BP, I'm looking into a 455k 11% cap turn-key 7 unit fully managed off-market property in Southern Chicago, and I'm trying to figure out if I'm doing something wrong in my analysis.

You do have to report to California each year using California Franchise Tax Board Form 3840. 

After a few months there was a disagreement between the two and him and my aunt left the property (it’s been about a month ago now) and refuse to return the keys and remove their stuff.

I used to tell them that he has his own key. 

That will probably be a key to your success...finding the solid base hits and investing for the long term. 

Is this a turn-key property or require rehab?

I am not worried about the amount of work needed as i've been in construction for the last 4 years, and have seen people get financing on homes that shouldve been boarded up/torn down.

However, this strategy has been used successfully (without IRS challenge) by numerous property owners for nearly 20 years, including many public companies that have reported their transactions to the SEC, with the full acquiescence of their boards and outside auditors.

My top recommendation is always to plug into the podcast - it was a huge key to my success in those early phases.