If your goal is to own the property but have essentially no day-to-day involvement in the business of the vacation rental -- you don't talk to potential guests, you don't maintain the calendar, you don't coordinate housekeeping -- hire a real legal licensed vacation rental manager.  

Depending on the shell, it may be more time & cost effective for builders to start anew versus retrofitting existing structures.

Such as law that protects other tenants being effected by 2nd hand smoke?

Everything I have read or heard, including my business law classes, says that the lease is still in effect.

This was very effective for the constantly damp basement floor of one of my daughters homes.good luck  

But above comment is probably right about tragedy of the commons effect on "everyone's laundry area" which can be a cleaning and utility cost issue and even vagrant or misuse issues..

If you do a lease purchase, you might make $200 per month for 8 years and $700 for 2 years if the buyer pays it all.My experience is these types of lease purchasers don't maintain the property and if anything changes, they bail.  

You need at least one layer of protection between you(r personal possessions and assets) and your business entity structure (translation: more than one entity)If your businesses are properly established and maintained they WILL afford you considerable (though not "perfect") protection against even the most frivolous of lawsuits.

Cashflow is the number you come up with after paying the mortgage (PITI) and also accounting for expenses like vacancy, capex, maintainence, utilities and management.

Although I see why you are curious about its effects, inflation adjusted IRRs are not generally used in a commercial real estate analysis (especially given the current low-inflation environment).