Careful going outside state lines -- contract for deed is not allowed in Texas.I didn't think COD is illegal in Texas, just perhaps not recommended anymore, because it is difficult to comply with the rules or regulations. 

If I can't hit the 1% rule on a real estate deal then it's not worth my time given my experience and options in the equities markets.

They are using rules to add multiple ADUs.Here is a list of why adding a single ADU in dingle family  zoned areas in my CA market is typically a poor RE investment:1) The value added by the ADU addition is often significantly less than the cost of adding the ADU.

I am in the process of buying my fourth unit but this situation is a new one for me!

I saw some properties today, only one of which I thought had potential, but an offer would have to be pretty low to hit the 70% rule which is the goal.

  #1 rule is not to trust them, but they still have value. 

You’ll want to get really familiar with local zoning laws, short-term rental rules, and landlord-tenant laws as they vary by town if you plan on going the STR route.Focus on Cash Flow Early On: You might be tempted to go for something that appreciates quickly, but in the early stages, it’s important to find properties that bring in cash flow.

But generally speaking with the new landlord rules etc I wont fund occupied houses whether at auction or non Auction I want them vacant before we fund them.

Seems like you should not have to but showing they broke house rules leading to damage may help. 

Know the rules, know the tenants, know how to get paid and know the repercussions.