Last night we had a contractor come in, assess the damage and then work on cleaning it all up, drying it out and spraying.

I have already been able to meet her inspector who she works with regularly.

@Jon Blackburn Don't have to invest into a fund- can just invest in a regular house as well.

It's hard to find deals right now, but if you're the bank (cash purchase) or you don't care if your returns top 7 or 8% (institutional buyers) then you're going to clean up nicely because competition has greatly slowed.  

Thank you for your valuable advice, I had a few homeless persons and regular section 8 people came, the section 8 people don't want it because they have the one bedroom voucher, and they don't want studio apartment.

We received a small note like this: -Paint and small repairs: $ 900-Other supplies: $300-Rent ; $100 We really took care of the apartment, removing all the shelves, plug all the holes and did the cleaning myself.

Make a clean offer and be rid of the complications of allowing her to stay.

You definitely don't want a situation where someone gets hurt by traps or poison that you place.If it is more related to the tenants being pigs than a hole on the outside then it may require some education on how to keep things clean and charging them for pest control if local law allows it etc.

Additionally we have gotten ourselves in a bit of debt and could use the profits from the sale of the house to clean up our current finances (about 15k in credit card bills). 

@Jesus Ramirez Income from wholesaling is treated as active income, subject to self-employment tax in addition to regular income tax (at ordinary rates).An LLC is one option but your entity structure should be decided after a full analysis of your situation by your CPA and attorney.