However, I live in New Jersey, which is a very densely populated state with many Adult Communities.

I'd just look at it as entertainment.  

We have since learned that they are having all tenants from both of their units use the single W/D. 3-4 adults working on a pig farm when we were accounting for 1-2.

@Jay Hinrichs, truly entertaining you are!

If you are an adult and you have no money and bad credit then you likely have bad financial habits as was stated above.

A mistake is to entertain and listen to, and be swayed by retail investors on this site bashing on wholesale, assignors, deal finders, marketers...if thats the case, go buy a 5% off deal on mls from a retailator, and youll be upside down and no cash flow, but you would have made a seller happy.Buyer sets the price not seller...if you want to submit to retail do it, but don't bash prospectors, marketers and savvy deal finders ....I have no respect for retail pushers.When you buy off amazon from a seller, your buying from a wholesaler...do you then return your product because you don't like the profit made, criticize amazon, and the private label seller, and complain that you didnt buy it directly from the production line seller and get that price?

The only thing I would bring up for your consideration is to check the rules related to your rent-by-the-room strategy.For example, here in Denver, Colorado there are limits that restrict how many unrelated people can live in the same household. specifically it states: "up to 5 adults to live together in households where not all residents are related; previously, only 2 unrelated adults were allowed to live together in a house and 4 in a duplex or apartment.

But feel free to explain, I'll entertain your argument.

Just got off a call with Richard and had a nice conversation with amplify, but after reading everyone's experiences im having doubts of even entertaining them as an option.

If the entity produces passive income such as rentals or interest, then there is no generation of Unrelated Business Taxable Income.If, however, the entity is engaging in a services business or something similar, perhaps hotels, self-storage, adult care, etc., then that produces trade or business income.