There is no charring or damage to structure, just smoke discoloring as far as I can tell. 

In your instance the smoke and mirrors seem to be hiding fatal flaws in the deal.

(Assuming your realtor isn’t “blowing smoke”.). 

I am installing wireless, ten year lithium battery combo smoke and carbon monoxide alarms in my rentals. 

And when I applied for a rental license it was a really easy process, they cared more about the safety things like having enough smoke detectors and fire extinguisher and GFCI outlets near water, etc. 

Smoking in units, people not on the lease staying there, police called for various reasons, etc...- Almost impossible to get any kind of unit damage paid for beyond what you have in a security deposit The rest of your statements about the homes needing a ton of work, contractors costing the same, and dealing with properties that are very tough to force appreciate are spot on.I personally do not invest in Section 8 housing anymore because they are normally cash flow purchases.  

“Weare dealing with increasing costs of cleaning up after drugcontamination from smoking methamphetamine and fentanyl in units,”wrote the Archdiocesan Housing Authority.

Things like leaking pipe under sink, downspout that needs securing, sewer vent pipe out to the attic, missing smoke detectors in a unit, loose material, etc. are all very easy fixes that we would be happy to make for you. 

So the rent is paid, but he is disturbing the neighbors, or stealing things, or smoking cigarettes indoors or something.

everybody get a pen and paper I got the information on Keystone funding Network it's a division of funding for flipping which is an internet program where they try to get you involved in getting their program using their computer software and all that kind of stuff Josh Allen will contact you after you get a 15 day free trial let me back up you can sign up and get a 15 day free trial everyday they will send you one or two or three or four emails and they all involve a video of some type just about as it tutorial supposedly I think really it's a smoke screen because you go into the website so far everything I pulled up is in the MLS just about and I tried to get to the funding sources they said they have hundreds of them and I signed up as a member for the 345 or $395 a month cuz I'm going to cancel in about 3 or 4 days anyway to see if they actually have lenders out there so far I can't get to it and I've met all their guidelines so what they do is Jerry Norton Jerry Norton it's called jln Group LLC 5406 West 11000 North Suite 444 Highland Utah 84003 I got several emails asking how I like the program so far I haven't been able to get into the program so far 90% of the time and as far as sources for funding they say they have sources for funding and it's free as I want me to respond to one of their emails where they will do a telephone interview so that I can be allowed access to hundreds of thousands of dollars and private investor money and what they do is an invedtor walk you through what you need to do like a mentor so to speak. after you find the deal you submit the deal and then what they do is they will give you a proof of funds letter so the person will take you legitimately I've never had to do that I just Pony up about $3,000 cash and put it in escrow so they know you're serious proof of funds letter doesn't mean squat most of the time especially from a private investor if it comes from a bank that's a different story so what they do is they want to walk you through the process supposedly they put a group of investors together and they fund 100% of your deal they will hook you up with the contractors who were going to do whatever improvements are and after everything is said and done basically you get a percentage of the net profit and they get the balamay  get about 60% of the net profit.