I’m curious to see if this is a loss cause or if there are ways to turn this into an opportunity to make some money.

No one cares about your money more than you. 

Sounds like the place is going to be a money pit any whey 

Earn money, build your credit, save up, and invest wisely.

It's a great way to increase your net worth and these loans can also be used to pull cash out of a property as it appreciates allowing you to reinvest money into new deals.Happy to connect to discuss further. 

I need money to build this facility.

For example, I would tell them that if they leave in less than 15 days and there's no physical damage to the property, I will hand them their deposit and give them back the entire month of June rent so they have money for a new place.

It’s not uncommon for the bid to be zero percent, the tax lien buyer making his money on obtaining the property and selling it if there’s no redemption. 

We rent in the summer at $199/night which puts us high and keeps bookings down, but I've learned renting out to the cheapos just ruins your house faster and you end up replacing more things, and your bills are higher so you're still not making any money and your house is getting ruined faster.

As a passive investor getting a mentor is a cost/benefit decision: money for training, experience, access, and therefore speed.