The framing has a short truss at the head of each staircase opening so I can't slant the headroom.

It's not super substantial, I would guess an inch off and the first floor foundation looks solid.

@Zach Denny that would be interesting, would be worth a try before things close again (looks like that may be where things are headed)

How they got there, where their head is now, what are all of their options and why are they good or bad, what their hopes are for the future etc... write it all down.

When you get your $140,000 loan you will be paying substantial costs and while you are working on the property you will be paying insurance, property taxes, utilities and I will bet the cost for heating while you are working during the winter will eat up a lot of cash.

Q1 Answer - If a rental is a trade or business per IRC 162 it qualifies Q2 Answer- STR is passive on E if over 7 day average rental stay and no substantial service STR is non passive on E if less than 7 days average rental stay and no substantial services. 

I think you'll find that you can raise them substantially.

@Jennifer Manzella SavvaSTR's do have some unique differences from their LTR counterpart.There are unique tax laws if you provide substantial services.STR's are normally furnished by the owner which may be eligible for immediate write-off / bonus depreciation.

As far as running a business, would an LLC be enough to cover the whole property, or would it make more sense to structure it in a way that was separate from the residential.This question is just off the top of my head as I just came across the lead, and am going to look into it more. any ideas would be appreciated.

Near the driveway is a curve in the road which becomes a blind spot of sorts for seeing any vehicles headed around the curve.