Only gonna get easier from here.

These 2 individuals appear to be a mother/son.

Going from MFH to NNN retail or industrial, you are trading one set of issues for another, though presumably easier issues.

If so, then finding tenants doesn't appear to be a problem.  

Some of the assumptions appear likely as 7 inspections out of 7 all revealing major issues is not impossible, but at best unlikely.The question really is the severity of the problems that the inspection revealed.

However, it appears that they are neglecting the maintenance of the property.

For numerous reasons, this strategy is not anywhere near as simple as it appears, and the risk of default problems can be quite high if the seller is inexperienced or unknowledgeable.    

I'm surprised that someone who recognizes the illegal importation of often unvetted individuals would seek to find yet another way to fleece the taxpayers.To answer your question, though, it would appear that the money being made is passing through non-profit agencies who then make the decision where to house them. 

I chalk that up to he must be buying a bit higher end that is easier to get a different level of tenant.

My recommendation for this strategy is to minimize the amount of possessions you have so it’s easier to pick up and move frequently.