He had mentioned taking legal action because we are "violating the lease by not providing a safe property."

You've earned $132,000 more by splitting your money and leveraging it.

I actually read somewhere recently that hosts should aim for a review average between of 4.6 and 4.8 ( or something like that) because only 5 star reviews means you are leaving money on the table and giving in to guests demands too often. 

Potential asterisk on pulling that money out of the S-Corporation.The benefit of not having real property in an S-Corporation is flexibility (don't have the same deemed gain rules if pulling it out of a partnership), basis in the debt (in your case you don't have any debt).You could still end up with some double tax on this. 

What you are asking is basically how can I put little to no money or work in, do little to nothing, and then crush it.

At that point, money is not your problem.

I know investors who invested the minimum amount with us and much more with another group...They ended up losing money with the other group. 

Not sure your area that you're investing in, but the perfect BRRRR are kind of hard to come by now in the recent years.. so have the expectations to leave some type of money in the deal..Big thing that I've ran into and I've seen other investors run into is running out of money doing the BRRRR.. as some or most times you have to leave a bit of money in the deal, folks usually run out of cash to continue to do deals.. especially in the recent years..But good news is.. as you're holding and cashflowing on the deals, there is always opportunity to recapture the equity, not to mention tax benefits etc..I also see some pitfalls in investors getting desparate for deals, so they get lenient on their number etc.. as they do i see some get backwards on some deals...

@Chris Seveney - Do you mean basically what happens if the property ends up losing us money after sale?

So the tenant used the Pauper's Affidavit to appeal claiming they had no money correct?