For the income to switch to Sch C reporting, you also need to offer services similar to that which a hotel might offer such as daily housekeeping, food/drink, and potentially various other amenities depending on how you'd like to qualify.What you describe is simply changing property managers, it doesn't really matter whose name is on the AirBNB listing.

I say that no XX year old house is perfect and I will get any health and safety issues addressed but we need to be reasonable, we are not buying a new home.

It's been a great market for me.Things to consider when choosing a market; population growth (you don't want a stagnate or declining population), crime/safety (high crime usually means more unqualified tenants and will diminish property value), state property taxes, tenant/landlord laws. 

This places a would-be investor into the same food chain as the hapless tenant who depends on both rent and government subsidies for financial survival.

Dealing with insurance and repairs is secondary to the wellbeing of your tenants and neighbors.Once you've confirmed everyone's safety, it's important to document everything thoroughly.

Safety comes in numbers.

Car manufacturers go through endless licensing, safety controls and testing.  

I have asked, begged and yelled about the safety situation and he just doesn’t care.

(I just won’t own a property where there is an existing safety issue I can’t fix).

If you win a bid, you are inheriting an expensive headache, a safety concern, and a tax liability.