We are open to offer a credit and full refund to buy their cancelation. 

You can get great returns and take advantage of the cost seg benefits.  3. 

To leverage this benefit, prospective property owners must engage in short-term rentals and provide substantial services to guests, such as daily cleaning, meal provisions, or transportation services.Additionally, navigating a material participation test becomes crucial.

But my understanding is also that there can be tremendous tax benefits / write offs when it comes to real-estate.I am looking for more guidance from professionals on how to structure my investments and how I could potentially harness the power of depreciation and write-offs to legally save money on my active earned income.

I was planning to offer a $200 credit and full refund. 

Tenants should not be able to revers a charge - unless they paid via credit card and filed a claim with their credit card company.In that case, the fault is NOT with Buildium, but with the tenant.How have you checked out and verified the reason for the reversals?

Fast forward 3 months and he has only brought me 2 applications, both of which were tenants without a stable job and horrible credit. 

However if you don't perform it will show up as a default on his credit since he is still on the mortgage.Remember just becuase someone should be motivated does not  mean they are motivated.

Get on the phone with one and see what your situation may allow for and whether there will be a benefit.

If his credit capacity is sufficient, and his experience sufficient, he may be able to obtain a loan from institutional sources to compliment whatever capital he’s personally able and willing to contribute.