On the other hand, everybody in my family owns their own business.

At the end of the day, whatever puts the most cash in your hand is the best for you

They make it very simple for us to understand the material especially being a newbie like myself!

If fixing the house is more expensive than just demoing and redoing it.THat is the simple answer.However you also need to take into account that even if redoing it is (slightly ) more expensive than just fixing said sheetrock... know that a full gut, will result you in a brand new house interior... something that fixing and patching will never even come close to.

its almost like a sport in some of these areas and these techniques seem to be handed down over time … Jacking the power..,  by pass the water meter ,  rip off your condenser unit.. all quite common in the areas that are high % rentals in the SFR realm. 

I'm doing the same and have met so many investors locally who are willing to lend a hand.

I would not be concerned with multiple home offices, the law has changed to a simple method that the irs is unlikely to question.

If you find one that is experienced in investment property, they will be worth their weight in gold.It's difficult for someone to hold your hand through this process and answer your questions when we don't know you or the property.

The simple answer is YES.  

Of course not.They claim the situation is unsafe, yet they haven't even taken the time to call the police and file a simple report so the cops can look into it.