I can definitely see rising interest rates placing a pinch on growth.The thing I can't help but wonder about is whether bond prices will re-inflate to push interest rates back down once an economic hiccup comes along.I'm pretty sure that the Fed has been raising rates to store some ammo in their can so that they can push rates back down if they need to combat a recession.

The house was set to be demo'd by city, tax sale by county, fraudulent probate claim by son's Mom, a dirty attorney, a bad judge, a city attorney, code enforcement and bldg depts who don't talk and require conflicting compliance. 

That is immoral, unethical, and fraudulent. 

Other than buying in a "safe" area, screening potential tenants, and potentially not going alone (which is cumbersome) how do you combat this barrier?

Go find a local lender familiar with the nuances of gifts of equity AND the "principal residence guidelines apply if..." exceptions for if/when you are providing housing for a disabled/sick/retired parent (which you ARE doing it sounds like, so this isn't being sneaky or fraudulent). 

If you have constant attempts at contact with the resident with him either responding very little or not at all; or if he is combative it's all in writing.

Just constantly combative.

Often an investor will hand it back/walk away after they get tired of being Landlords & all the drama that drives them out of that 'combative arena' of REI.

Now here are some others I've heard that are not ok and would be fraudulent.

I actually referred 2 ICE cases to him on fraudulent use of ID's on rental applications.