If left unchecked the wall could eventually collapse inward with undesirable to catastrophic results.It may be possible to brace the existing wall to halt movement and/or support the building to allow that section of the foundation to be repaired/replaced.  

This house is also in a MUD and a lot of MUDs have their own tax office as well.MLS is telling me the 2017 tax on this property is $4258.This is a short sale, which are painfully slow to get the bank to accept your offer.

I'd think that's at most a full day worth of work and $50 in parts.If they had to go back another 2 times to finish mud and paint, etc. 

I get that logic, but if I am in Arizona wanting to buy in Arizona wouldn't that mean I was sending only to people out of state making a "kitchen table" meeting geographically undesirable?

On the other hand you wouldn't want to go to low and start attracting undesirable tenants like @Stephanie Dupuis had mentioned.

What are some of the bigger "red flags" or issues/downsides to purchasing these Nore (other than the obvious of borrower's poor credit, undesirable neighborhood, poor payment history, borrower's initial low down payment/equity, etc)?

Amadeus:Quadraplexes at 25 to 40K per unit will be rare - even here on the East Coast - and you will mostly find them in small communities (whose economic prospects are stagnant or declining), undesirable parts of town, or they will be in a desperate state.  

There are places in the city that were very undesirable 2 years ago that are up-and-coming or hot right now.

I had considered it but there are a few undesirable traits with the property that make me worry about holding it for 30 years or more.

I just kind of feel like I'm stuck in the mud so to speak where I just feel like I'm never going to get ahead at my current rate.