Assuming background check and credit check are free of evictions or criminal record and credit score is decent, I seem to uncover the biggest red flags through talking to the applicants while showing the property.

Usually a google search will uncover those.Harder to find is that some judges in certain jurisdictions like to bend the law to help tenants and drive delinquency higher for apartments in that area. 

What we need help with is uncovering what works in this area.

I see this as a better long term hold.Vs something that would be cash+ but in a not so nice area with poor schools.I didn't speak with the lender about this, better to not confuse them and just get one answer at a time.Option 2: Current home is Traditional loan with 20% down, that we have lived in for 5 years.

You notify the police and they uncover several more.

Had I not done the inspection (waiving appraisal and inspection contingencies is not uncommon in this hot market), I would not have uncovered the other issues.

I knew this was tough as the police involved did not even uncover what had happened.

You get to keep your contingency in place - in short you can still do a full inspection and still back out of the deal if you uncover something big, of course you can’t renegotiate for anything other than foundation/sewer but you can certainly back out.2.

It's so nice to meet you!!!

Get an ESA I, that'll liklely result in needing an ESA II (due to the fact the ESA I will uncover the tank).