.- 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.  

-The insurance market could change by denying/reducing coverage to addicts, putting this clinic out of business.The way I see it is even if the clinic shuts down and they break their lease, I could always rent it at market rate to a normal family, or I could just sell the property.  

Those are not the inputs that normally stand out in the excel spread sheet when analyzing the C/D properties vs.

Normally when the contractor disappears this means they are in jail for not paying child support.

Tenant advocates say it is due to greedy landlords without a basic theory of economics that increased risk requires increased return and that these rules lead to higher rent increases (good tenants penalized for bad tenants).As history has shown, the LL normally benefits from increased appreciation and rent growth but that is besides the point.  

Before you say 'you should have the money to get into a contract' I normally wouldn't be in this situation but I've just closed on a property that was all cash 2 weeks ago and a friend calls me on a property that's truly an amazing deal that I want to get into contract (has stable tenants renewing contracts above market, I can get for under market).

The investors I normally move forward with are looking for the stability of LTR and the ease of a turnkey product.  

For several Akron zip codes a 3/1.5 at that sq foot would be 115 to 130k fully renovated.

Lower electric bill, carbon foot print, blah blah blah. what's not to love.BUT I'm in Florida, not sure about you.

Thanks to recent clarifications from the IRS you will also be able to defer not only the capital gain and normal depreciation.