They will have the right to stay in the home at a reduced rent - $1,600 will come off the loan every month they stay in the home and they'll pay $400 cash to cover taxes, insurance, and hoa).

You can still expense  the real expenses related to the property/deal to the property to reduce your tax bill.Get your tax and asset protection advice from your own professional advisors, but generally speaking, you are doing business with an LLC, but effectively negating the LLC and doing things like a sole proprietor. 

Then, of course, they will need to pay off the reduced, more manageable debt.

Our business is designed to collect money on the first of every month and usually when landlords get greedy at the sight of a wad of cash their brains and common scenes go out the window.At the end of the year I make my full income without ever having to reduce my rent.

I don't think it matters if there are buyers or not, when ORC (Ohio revised Code) is not in your favor, the "classic" wholesalers will eventually be, by statute, reduced or eliminated.

Thorough tenant screening will be beneficial to all and will reduce your risk and liability.

Just to add to Wayne's comment.Over the four year holding period, the depreciation you took reduced your taxable rental income by $10K.  

If they have to buy the filters expect them to run the unit on a dirty filter for 6-12 months, substantially reducing the life of your HVAC system. 

Why not learn once how to avoid the common mistakes and reduce your losses?

Yes, you want to have the bulk of your insulation in the conditioned side of the envelope (wether it be wall or roof deck), but placing a certain amount on the exterior  as a means to control the condensation point within the wall/roof assembly and to reduce the thermal bridging of structural members (studs, headers, rim boards, rafters, etc).