He purchases a distressed property for $60K, rehabs it for $30K, and puts the remaining $10K away for a safety net. 

Be aware and jump on it with safety net. 

I’d be cautious dealing in that type of property even if you had experience, a nice cash reserve as a safety net and a bank lined up which it doesn’t sound like you do.

I am a addict when it comes to deals and look several times a day in my local market and missed some great deals how ever in my market I would suggest a duplex because in my city everyone works at the heart of it and the land here is just used up so its prime rentals either way I go home value has shot up as there is just no more land to build on unless you go out of town so SFH are overly priced so its a ruff cash flow, for me   I will be doing a duplex for following reasons 1 more doors = more safety if a moves out b is still helping to cover my payment 2 its still 1 roof 3 I control the value of said property if I really make it diamonds = raising the rent to the cap it controls the value of said property.

When finally installing the fire alarm system, the inspector still won't lift the cease order because of the CO issue (and after hearing each time, it was all about people's safety).

We are doing a full digital launch towards the end of the month, but we've been doing loans in "stealth mode" for a while now. 

I don't want to retrade the deal, but this is also a life safety concern that probably will need to be dealt with whether we close or not. 

The building inspector came and recently shut the building down for health/safety reasons by turning off all the gas to each unit.

I’m just getting started educating myself to invest in the near future and your model is very very interesting.

Since they are concerned about their safety and want to leave anyways, it will be a perfect opportunity to replace them.