Seems to me that he is shady enough to recommend you a contractor that is either a cohort or back-end dealer.

I am purchasing for $5000 to $9000, and selling the homes from $26,000 to $38,000, (plus finance charges) and that is still cheaper than they will typically get from a dealer on a used home.

Two things come to mind. (1) An entire family got into the drug culture and ended up being evicted.

you have to be a bigger crook. dig up the dirt on this guy and use it anyway you can. as far as the dogs, call the cops, tell them that you believe he may be dealing drugs in the house because you smelled pot when you last talked to him and you need to access the house to verify. get in there anyway you can. 

He had fallen into drug use and everything changed for him and his business.

The worst thing to do is (well, other than gamble it all away or use it on drugs/booze) is to rush into something unprepared.There are lots of ways to invest it:- Stocks, bonds, mutual funds- CDs, high-yield savings accounts (which really aren't that high yield)- REITs- Private lending for flips- Private lending for buy and holds- Do your own buy and holds with a property manager- Partner for flips or buy and hold where you have an equity stakeEtc.

It wasn't a terrible location during the late 90's to early 00's but the job market isn't as good as it once was and the area has been plagued by drugs and drug violence. 

The fire departments report determined that the fire was caused by the tenant throwing a cigarette into the trashcan, and also mentioned finding drugs on the premises. 

Registered sex offenders have the lowest recidivism rates when compared to domestic violence, battery, drug offenses, theft, robbery, DUI, and assault.

No profit for the dealer.