After analyzing the local Mercer County market I've noticed there are not that many MFH that are desirable meaning cash flow can occur, but appreciation, schools and good tenants will be at risk.

We did notice some water damage in the front of the house but was told the roof is in good condition.

.- 12/13 the check of course bounces due to her putting a stop payment on the check- 12/13 I was notified that she turned off utilities on 12/12- 12/14 I provided her email stating I would be checking on the property on 12/15 (24 HR notice)- signed lease through August 2018- I have $1650 ($1350 rent and 300 pet deposit) in security deposits- upon checking on property I found that there are no items of value in my property and she had left all keys and garage door openers that I had originally provided her.

Please advise if we bought the property and if it was the lease from the previous landlord.One time we saw that they were smoking, but it's not allowed in the property.Also, we noticed that it's only 1 person in the lease, but it's actually 3.Please advise if we can do something with that.

So far I've notice some towns have regulations or already blocking STR like Woodstock, thing is that those are saturated markets already and no room for STR (IMO), but catskills is so big its a matter of a location and price! 

I ran an O&E and I got:- "notice of election and demand for sale by public trustee"  this is for about 350k and I assume is the lender whom he didn't pay- "MERS assignment of deed of trust"  I'm not sure what this is but I think it's related to a quit claim deed where he added his wife to the deed thinking it would shield him from foreclosure.

Alabama has had a "notice pleading" system for many years.

Tenant had a notice to vacate after 4 day grace period and lawyer submitted eviction to court last week (they are only late for July).

That will cover much of the issue and any remaining visible holes from the tack strip will be so close to the molding that it probably won't be noticeable from a standing position.

You'll also want to ensure you have a good property manager to look after the upkeep of the property if you are not there to notice anything deteriorating or which may need attention.Creating an LLC in California could cost you a minimum tax of $800 every year.