But I dont live in that market so i'm making alot of assumptions. 

Assuming all of the assumptions we've made are true: 1. they are good people deserving of help, 2. they have tried everything (like taking out a loan, I've never heard of anyone doing that.

There are a lot of assumptions, but based on what I wrote, can anyone give me any advice on how to decide between getting the SFH or the triplex?

Normally the assumption is that the individual has followed the cease and desist letter with little follow up from the state.

@Josh ThompsonSeems like you're making allot of "Assumptions", why don't you have or can you get the "Actuals" of the property currently?

The lawyers confirmed your assumptions. 

So if you're investing in multiple deals, you'll need to gain some understanding of the markets, review sponsor track records, verify their financials projections make sense and that they're using reasonable assumptions, make sure the fees aren't excessive (fees vary for each deal).

Thomas, you are making assumptions about me that are completely unfounded and unwarranted.

Therefore it is strongly encouraged to make sure you do the title search and, as best as you legally can, inspect the property so that you can make some assumptions about its condition before placing your bid. 

My assumption is the 1% rule means you need to bring in 1% gross monthly rental vs sale price.