Dry cleaners - especially old ones, are frequently contaminated with PCE - which is a disaster to clean up.There's probably a reason this property is an REO - the last owner bought it without knowing the difficulties of cleaning up a former dry cleaner location.I think you'll spend a ton of money if you try to clean it up, and you'll be sitting on this property for a long time. 

Being organized, having a thick skin, etc.

Will slow down when the deals dry up!

They bring their laundry and have a party while they each wash and dry. 

It’s worked for meIf you got 25% skin in the game plus cash flow,  and some manage experience.

The place smelled very bad but couldnt be smelled outside or upstairs.2nd floor needs paint, minor wall repairs, kitchen floor, etc.Basement is dry and will need to be cleaned out. 

The few loads of delicate stuff they might dry on a rack in their apt I wouldn't worry about. 

It's a desert setting with dry and high temperatures year round.

Note that I do not put a lot of time into due diligence until the "contract to hold" meeting, when they put some skin in the game.At the "contract to hold" meeting, I collect an amount equal to one month's rent.

No basement can be guaranteed dry, but there are better ones than others.