If you've ever seen an insurance company investigate a large property claim, you'll know what I mean, they'll dig as deep as they have to and God forbid if someone is injured or killed, then the police/fire dept's will be looking too. 

I currently work in DC as Special Police Officer for the Department of Interior.

I would primarily agree with @Bill S. here, but this is not "illegal" in the sense of police officers showing up at your doorstep.

He's very local and knows the neighbors, the police, the garbage folks, the local drunks, and other various local labor.I don't trust him and have caught him skimming off the top on various costs.  

I'm assuming you've filed a police report?? 

., don't worry, there are lots of "Wholesaler police" here at BP ready to shoot down those who try to justify it in States that forbid it, (but also to shoot down blanket condemnation of the same activity where it IS allowed)!...

Federal agencies can have broad police powers and federal regulators don't act independently to their whims, generally there is a long process of fact finding, diligence, evidence gathering and legal opinion before charges or allegations are made. 

You'd probably be amazed at the things insurance polices won't / don't cover. 

If you wouldn't feel comfortable without a police escort and you dislike talking to the residents, it is not a good idea to invest in those neighborhoods.I'm not addressing the crime rate or perceived safety of a neighborhood. 

PM me for details... don't want to get in trouble from the BP police but would be glad to let you know what to expect in for rent to value ratio in the Greater Seattle Area.