I'm just worried that some potential buyers will be turned off by the worn carpet/outdated paint, presence of dogs, and the fact that it was a rental for a few years.Listing agent suggests to wait until the property vacant and cleaned up before listing on MLS.  

Septic tank was also cleaned about 3 years ago.I called a property management company and they estimated it could rent for an average of $1,050 / month.

And the house has always been Clean, Neat and Tidy at showings - certainly better than showing it with current tenants who are packing! 

Even if we have a open night, we allow last minute bookings, so I like to have the units clean and ready so that if someone books at 8pm for the same night, (which happens here pretty frequently, haha) that nothing needs to be done and they can go check themselves in. 

I cleaned the area with a rag and about 10 days later it's coming back.

My father in law has always done things about 70 percent and the house is currently in that semi unfinished state (I spent 5k just to have it cleaned and functional before I moved in).

For legal purposes if you have a eviction the rooms need to be numbered, so keep that in mind.Shared type of roommate agreement for common areas, regarding cleaning, trash removal, laundry area, and overnight guests, and extra storage, also X marks the spot where you will park !!..

Tax wise you need to make a clean break.

Welcome, Joe, great to start with clean slate and little cash and time on your hands, I started in real estate after cashing out my stocks, savings and 401k paying being penalties but it was worth it.

That doesn't include Airbnb's fees, cleaning, management, etc.