I hesitate to call the current market a bubble - there's just too much up in the air to really see what's what, and while RE is a big part of the general health and status of the economy, there are a number of other factors that determine what / when / how the correction happens.The bigger they are, the harder they fall, so unless we (collectively as a society) really have our crap together (which we don't), when we eventually do go down I think it's gonna be a doozy. 

A few additional pros and cons of an FHA loan is that the appraiser has stricter guidelines, one of them being that they have to point out any health and safety hazard that are present and require them to be fixed prior to closing, which translates to potentially a riskier transaction for the seller.

I found a property I would like to purchase, but the thing is the man who owns this property is in declining health and is looking to get rid of 4 more properties with similar situations.

That may have health consequences for your residents years down the road(recent research shows.) 

Contact ALL the local media, safety issue, health hazard, poor customer service, undue burden... .get my drift?

The town I invest in has occupancy limits,  meant to maintain the health and safety of the infrastructure.

Everyone we have networked with says we must have skin in the game to do any kind of joint ventures/learn from them or even join a team, which we would love to do, however we basically gave our life savings to a family member to deal with a health battle.

I may be misreading this, but from my experience of human nature and working with teenagers, if you see this young man as a "punk" or "jerk" and treat him like one, he'll fulfill that role.

Even if you have to sell before the 2-year mark as required by sec 121 rules because of health, work, or some unforeseen circumstances, you might still able to avoid tax.

There is a recovery/behavioral health building down there that seems to be holding the neighborhood back a bit.