You could offer to replace the carpet in the room that the man died in as a compromise though.  

No amount of deposit will cover the damage repair costs.If it's perfect for a small family then do not compromise, find a small family.

Because this guy is the cheapest SOB in the entire world, and if he has compromised my health for his profit, I feel that that is lawsuit worthyWhat are your opinions?

The PM seems a bit too easy breezy on some items that could impact the property (more wear and tear damage... at least 5 people and 3 known pets at this point...) and compromise the whole landlord tenant relationship (like letting other not on the lease live there)....The pet and parking enforcement are just basic property management 101 and he should have simply taken care of this in a way that kept the tenancy together and kept you from stressing about it (that's squarely in his job description). 

I don't have a specific market for you, but my two cents is you might have more success hitting both high cash on cash return & appreciation with a STR rather than a LTR.Best of luck in your search, but remember: real estate, as in all things, is a game of compromises... and if everything is a priority, nothing is a priority.

Deals are thin as is, management is the flow of the deal after you secure the property don't compromise on either.

Plain and simply, anything that you are willing to take on that can compromise your investment.  

As a wholesaler if you don't tell at least 3 lies within your 1st two deal you won't be allowed in the wholesalers club.... j/k :-)Here's my nickel of knowledge: Whether its a little lie, big lie or slight bending of the truth, if you feel it compromises your morals to the point you can't live with yourself then by all means stay clear from it.

@Russell Brazil - I started my investing career in Toledo's 43608 zipcode of $15k 3 bedroom houses because it was all I could afford...then after banks began loaning again I moved into 43612's $40k 3 bedroom houses after that because it was a compromise between risk and return. $50k properties are super nice in my portfolio, and they better cashflow, my family lives on them :).

The elderly who are not mobile (diminished lung condition) or any other health conditions (high blood pressure, diabetes, immune compromising conditions such as past cancer treatment) could increase the risk.