Think it won't effect A and B areas--look at the BMW 7's and Escalades tooling around in the tough neighborhoods (they have more than enough money to spend).Forcing people to unknowingly house dangerous hard to deal with individuals (between prison sentences) is harsh. 

2)  Need clarification from them if the 2 persons on lease will be on lease as 2 individuals or as in a business entity such as LLC.3)  The questions you posted above:  Do they have a cost for construction and itemized list of equipment?

I recommend setting up keyword alerts for each area as they are discussed in the forums daily with advertisements posted in the BiggerPockets marketplace hourly.One thing to note when looking at the individual markets, you can make or loose money in any market.

Typically water won't be individually metered on these types of properties (too costly due to impact fees).  

You can find deals in any market, it is up to the individual investor’s abilities and talents to find/create them.

Maybe look at FHA 203k...google it..At the end of the day if the numbers make sense in your area then it's pretty cut and dry...Also if your circumstances allow you may want to actually reside in the in-law and rent out the rooms individually in the house which will almost certainly generate more revenue. 

It was also difficult to communicate with them since only 1 of the individuals spoke somewhat decent English. 

Will be spending some time in this area and wanting to connect with other investors, particularly individuals in the short-term rental/VRBO space. 

We were able to successfully transfer the property deeds from our individual names into our LLC however as you've noted there is a risk involved with doing this.

Usually this will happen quickly, so long as you are a generally credit-healthy individual.