This may be the case with your neighbor, especially since it appears you've been monitoring the supposed activity the neighbor claims and seen nothing that confirms this.Some home owners are just nosy people who would rather see an empty building than tenants living there.My story....we once had an incident where a young man decided to ride his bicycle down to the local Kroger very early one morning to buy his uncle some soda. 

Thank you for the advice Manish.I have talked to a local investor, and brought it up in a local REI meetup with no solution yet.I haven't thought of a broker yet but I know one in the area that I will ask.Thanks again.

@Chris Policicchio thanks for the tip that's what I figured the only solution was and that's what I've been doing so far.

That there are detractors against note investing who either have an axe to grind or an ulterior motive for railing on them...That borrowers will do the logical, best for them solution. :)

Especially the high-end areas are very beautiful.This leads us (investors) to find creative solutions and value adding features to the properties.

I'm evaluating different solutions myself for my 4 unit.

If you can present your offers as a solution to their problem (and not just as a dollar amount in exchange for the house), you'll make your offers much more compelling. 

Affordable housing is so demanded and manufactured is a great solution.

That means bringing all electrical up to code and it may be worth more than what you can sell the house for depending on the location.If they are pumping water out of the basement - it could be a simple matter of putting in a $6,000 "waterproofing solution" (installing drainage tiles pointing water to a sump pump) to a $12,000+ repair of putting in structural steel to support a collapsing basement wall due to hydrostatic cracking occurring on the foundation.I would tread lightly on this deal.  

Mitigation with foundation flood vents might also help reduce premiums along with fill or other solutions.