Beyond that there are specific codes that I need to comply with to dispose of any unclaimed property.

[No coverage for] Water below the surface of the ground including that which exerts pressure on or flows, seeps orleaks through sidewalks, driveways, foundations, walls, basement or other floors, or though doors,windows, or any other opening in such sidewalks, driveways, foundations, walls or floors;...Wear and tear; marring; deterioration; inherent vice; latent defect; mechanical breakdown; rust; mold;wet or dry rot; contamination; smog; smoke from agricultural smudging or industrial operations; settling,cracking, shrinking, bulging, or expansion of pavements, patios, foundations, walls, floors, roofs orceilings; birds, vermin, rodents, insects or domestic animals.

Is there a way to avoid a due on sale clause for my current property and duplex but still operate them as rentals and be taxed as a business?

Send them a letter detailing this within X-number of days that complies with your local laws.

I admit there are bad turnkey operations out there, but a good product that cash flows and isn't in negative equity sounds like the goal of most investors.

As long as landlords continue to operate out of fear we will never have answers.Document every thing, all conversations, and, as Greg suggests, be prepared for them to play the "emotion" card.

Residual Cash, Dividend Income, Interest Income, Net Income, Net Operating Income, etc.

You will need a LLC, EIN Number, Operating Agreement, etc. 

I think his 12% may be referencing his multi-family that he owns and operates, unless he's not able to pull out all his funding.

However, I don't understand how buildings are financed when the net operating income will not support the mortgage payment.