I have a tenant who just moved in and upon entering the unit a few days later to hang a shower curtain rod (Shower stall so the curtain is 90 degrees I didn’t feel comfortable with them anchoring it to the wall) I walked into the mud room and was hit with a very strong marijuana smell.

Renovate, evict undesirable tenants, and fill with better tenants.This works if you know what you are doing. 

It is much easier to find 1% properties in rough areas (undesirable to most people): Del Paso Heights, parts of South Sacramento, parts of Oak Park.Basically, you should see what areas you're comfortable living in, what kind of cash flow that can provide and think about if you are happy with those numbers.  

Clear as mud?

It needs a new roof $7,000, electrical $3,500 a unit, plumbing $3,000 a unit, refinish hardwood floors $3,500 a unit, privacy fence $1,500, landscaping $750.00, interior mud work and painting $5,500 per unit, 4 new doors units and possibly 5to8 new windows maybe $5,000.   

If both are over $100k use the lesser of $100k or 10% of the lesser of income or net worthClear as mud?  

Sellers tell wholesalers if you get them this price they will pay a fee etc. and then these wholesalers go around slinging mud everywhere hoping someone will bite on a bad deal. 

So you not only overpaid for what you bought, you most likely bought properties in undesirable areas, made zero profit, and you are saying SF beats MF because of those experiences?

If they have lots of addresses in that report, but not on their application - that is a giveaway of an undesirable prospect.

You can get your caulk, tape, mud just to name a few things.