Bottom line is that I dropped my guard and didn't do the due diligence.

That was the intention of the original post, to point out that you cant let your guard down at any time. 

We ate breakfast in a place with a security guard toting a sawed-off shotgun.

Some are great but a lot of people are drawn to pit bulls because they are such effective fighters / guard dogs, not because they are great loyal dogs.

I think you're a guarded and careful person, but residential rental real estate is a kind of dirty business.

Then guard that basket."  

The old guard of lease option and subject to selling to owner occupants are fighting tooth and nail to find a way around Dodd Frank and CFPB.

Be ready for the push back and threats.Security lighting, bonuses for neighbors to call the police, get a security guard in place someone with military experience (best if they move in with the problem).MAINTAIN FIRE INSURANCE and don't whine to your agent.It is not the police department's job to fix this nightmare.NEVER AGAIN close with existing tenants.

The old guard syndicators are looking at hundreds of deals to find the 1 or 2 that make sense and underwrite properly.I see people buying trash in Atlanta that I would consider D properties at best and passing them off as B properties at a 6 cap.

I would check out Farm Bureau, Affinity (or REI Guard) and Tilton, Thomas and Morgan (ask for Chris).