Tried to work with them as I have a lot of (expensive) projects going on and would prefer to not have to deal with a vacancy.

I remember a tenant who decided it was easier to open a window than lower the thermostat in winter. 

It's a more expensive market than the Midwest and the short term cash flow is lower and that is the trade off for being a few hours away in a landlord friendly state.

I was adamant about not devaluing our services and lowering rates in what I believed could only end as a “a race to the bottom” for our industry and profession.

Reece,without full financials i cant advise much, but i'd be leary if the deal doesn't pencil at least ok while the current rents are in place. reason being is you'll still have your expenses (PITI+mgmt+repairs etc) until the units can vacate, no rent remodel, lease up again. with that much repair it feels like you have a LOT of DD before diving in.

The lost opportunity is worth a lot so lower your rents like every week or so.

Decrease expenses.

In my particular case the lower end of HUD payment (90%) is still much higher than market rents.

To be part-time is not worth the fee's and expenses associated to be a realtor.

Over the last year and half they been sporadic with answering emails/calls and not on time with their scheduled owner payments and not getting monthly statements that show funds collected/expenses paid.