Hoping the owners aren't the drug dealers themselves...

To answer your question though, there's a few factors that come into play.FHA loans are backed by the US Federal Housing Administration. 

And it was a ton of extra work for their administrative staff. 

I don't know if he has a medical marijuana card, but the lease states no smoking inside and no drugs at all.

They have advised to go with Stateside APM (administrative property management).

Within a few blocks, you can go from a half million dollar rowhome to an area with boarded up houses with drug users living inside. 

The property was in a not so good neighborhood that had drug transactions taking place one block over.  

Yes, you can, although if you're still working with the employer that sponsors the 401(k) some of don't allow you to move money out, sometimes they allow you to roll over your portion but it's always best to ask the plan administrator Old iras can be transferred into a self directed ira for RE.

I'd have new leases prepared and any addendum's for crime free/ drug free. pets, whatever ready for them when you sign a new updated term with the rents increased..Study the landlord tenant laws for your state and comply with notices and you'll have a good start.

This is a much more nimble vehicle, adds a layer of asset protection and can reduce administrative fees over the long term.There is much good information on these topics here on BP and a number of professionals offering these types of play services who participate in the forums.