Most inspectors will know that properties only need to meet whatever the code was when they were built, not current code and they usually explain that properly IME.

Lastly, I make sure that we are double checking and doing proper due diligence - I walk the property and do an in-depth investor walkthrough for them, we do a home inspection, we have a licensed GC to walk and write up an itemized bid, etc.And to answer the last part of your question, one of the hottest markets is Columbus Ohio!

but working with someone who is local to your market, who can show you their legal documents that they have used, introduce you to a proper title/attorney office for drafting documents...I mean, nothing is foolproof...but that route will have a significantly higher success rate. 

I notice you didn't say you'd actually seen the tenant's policy.Are they properly licensed?

Very few people have reached financial independence...and others that have reached it that keep working do it for personal satisfaction.Incidentally, most of us consider real estate, done properly, to be lower risk than the stock market, which is why we invest in it.

They instead lack the skill to do a proper bid.

Proper bookkeeping will help keep track of who has what dollar amount invested into the property in case of a buyout or a death.  

A lot of tenants might not know how to use it properly. 

I taught myself Spanish, I already know the construction crews in the area, the realtors, the communities, the land, I have someone managing the property, I have a maintenance crew… I already did an incredible amount of the work involved in finding a deal and turning it around through reconstruction and proper management.

The hard and the fun part is training my team there in the proper processes from planting all the way through selling.