Judge awarded tenant $70,000 and ruled that the tenant shouldn't have been charged rent since the unit was illegal (not up to current safety or fire code) and didn't give the landlord a chance to remediate the unit. 

Get a property inspection: As you mentioned, you will need to hire your own inspection company to inspect the property and uncover any potential issues that may affect its value or safety.4.

I only purchase off market, never put money down and I don't use banks, so my model is very different.

Another concern i have is the backyard has a BIG hill which is pretty dangerous to mow and could be a liability, however i could always include lawn care as part of the rent to avoid safety issues.

The safety standard requirements were posted, yet they raised a lot more questions than they answered. 

Negotiate, negotiate, negotiate... yes i was taking the sellers position and safety.. however its something to keep in mind if they balk a little one could offer this does not have to super high rate maybe just a tad over the wrapped rate. but one could show them the math on it and it might swing the deal plus when they learn that its a safer way to do these it could also put the buyer in good standing with the seller ??

@Steven Baker, Like @Bill Brandt said your business model is exactly that of a dealer. 

He said its a safety issue and even a very high window with no sill is still no no...He said the glass will get broke and tenant cut while bathing. 

Do mid term rentals listed through airbnb still need a separate, formal lease, similar to how a LTR would be set up.. or is the airbnb booking enough and provide enough safety to the landlord (e.g., tenant doesn't pay, destroys property, etc.)? 

Maybe some market research or asking around in local forums could give you a rough idea without going full-on data science mode.