As you may expect property condition has diminished significantly and several neighbors have resorted to calling the city on a regular basis to try to get it condemned.

Have you looked into other areas where you can purchase the same types of deals for a lower basis?  

Additionally, there are likely no tax benefits to them since they got a stepped-up tax basis at the time of the relative's death and thus their basis is likely the same as what you are paying unless it's been a year or more since the death.

Land basis $25K or less.

However, my neighbor works in DC and does the commute nearly daily. 

While you can certainly administer investments with activities such as executing contracts, paying expenses and receiving income into the plan, you put your IRA at great risk if you are out doing all the necessary marketing and deal-chasing activities that wholesaling entails.  2) Wholesaling is a dealer activity and therefore subject to taxation on Unrelated Business Taxable Income (UBTI) if conducted on a regular or repeated basis. 

Properties everywhere sitting for 60+ days on market and many off markets arise daily.

I just did my first one.. it was a house I wanted to retail but market softened a touch.. so I thought I would give this a try.. for me I just hired a good STR PM and I had income within a week of having the home furnished and they did it all for a management fee.. to me the management fee is a no brianer for the busy professional who is doing this as an adjunct to their daily business. 

Do you mind sharing how many units you have and do you do STR on all of them on per room basis or the entire unit?

The property had one tenant "paying" rent on a month to month basis.