As mentioned above, you can quit claim ownership of the property, but you are right- lenders don't like that. 

Also another thing to consider are most municipalities will significantly increase your taxes if you pop the top of the house.

I'm not sure about Baltimore but in DC, if you take on one of these that is already boarded up, the day you take possession they fine you and put on some strange tax because of it.

Chris...The property is paid off...currently sitting empty...with needed minor repairs.Trying to deferr Capital Gains Tax liability until my earned income is lower in retirement.Would this change your mind?

This is also tax deductible.

Quote from @James Wise: Quote from @Imdad Rahman: I've come across some online courses, particularly those by individuals like Tom Cruz and Section8Karim, who claim to provide valuable insights and strategies for successful Section 8 investing.

Your monthly payment would come out to roughly $2400/month including HOA, taxes, and insurance.

Recurring, Single Time Fees, Late Fees) and Tax Support (export financials for tax reporting).Summary:Inaggo is the only completely free option that meets the requirements.

What are some tax considerations or other legal issues to keep in mind as an out-of state investor investing in this market? 

Rentometer has avg rents at only $1067/mo so I'm also not sure about paying that much for such little rent for a long-term hold perspective when from what little research I've done you can get more elsewhere for the same buy price - maybe someone looking to park money for tax purposes or an all-cash deal hoping for a big upside?