It seems that most areas are not zoned for STR's and most permits are taken.

Risks are low demand, the bad shape of the property, the area around it, past owner problems, law and zoning issues, and meeting local building codes.

Additionally, failing to close a loan over a fiscal year is a huge red flag and usually leads to termination.I want to dive headfirst into RE investing to gain that experience I mentioned above.

They are obviously aware they live next to the gas station and this gas station was approved by the city/zoning.

In fact, anytime someone is rushing someone’s else process in a sale, usually raises red flags to me. 

While the issues you mentioned sound completely fixable, it's a big red flag that it failed the fire inspection.

Hey Justin, there are a LOT of red flags here.

Pros/Cons:    - do you need to make structural changes to meet the ADA, zoning, or fire code for the new use ( ie ramps, wider doorways, accessible bathrooms, etc 

There should be a red flag for the next LL to know that this tenant is not to be trusted.

I know 5 will not work as they don’t have the feature to defer capital gains that are invested in opportunity zone, so I will have to somehow manually record that in 8949 and transfer to Schedule D.After this is over, I will apply for a CPA license - I am now wondering if it is as easy as getting a license for property manger or real estate agent 😉