You should have:1) Involved an attorney when seller disclosed IRS liens.2) Required seller to supply copies of their IRS communications as a condition to extend contract.3) Required seller to reimburse you for your inspection costs to extend contract4) Required seller to reimburse you for your appraisal expence to get a copy of it.5) Never tried to rent out the property given the IRS lien and NO ONE ELSE but seller knowing what's going on with the IRS release!

Get us involved and maybe we can help look at some places you found and give you some ideas.

For what it is worth, I'm in California and I would not get involved in purchasing a property with only one bedroom units,  but it might be different in your area, and might be just fine for student housing. 

For the Kent property, your hours can qualify as long as you’re making the decisions, though IRS guidance can be strict when a property manager is involved.

In her personal life, she is involved with someone who deals drugs, as they do drugs and are involved in illegal activities.

There's a couple of things that make this more attractive than the other option sugggested of forming a new LLC to own the property.First is the expense and reporting involved in another LLC entity.Second though and more important in my book is that by having your LLC own a TIC interest and having your partners LLC own a TIC interest you keep the utmost flexibility available to you as you move forward with that property to eventual sale and possible 1031 exchange.  

How is AI involved here?

I am involved in 5 different LLCs, 4 of which are for rental properties.

Generally if there's a wholesaler AND 2 real estate agents involved, you are dealing with an MLS wholesale, which is pretty much always a losing proposition. 

The main ways are:Direct to seller: If you’re dealing with the owner, you can put your offer in writing using a standard purchase agreement (your local Realtor association or state website usually has templates).With an agent involved: If the property is listed on the MLS, you’ll usually need to submit the offer through the listing agent.