Their landlord reports that all rent has been paid on time, that there are no arrears, there have been no complaints from neighbors or other issues, and that there have been no excessive maintenance requests.

From what I can see, you don't have much money to launch your business, which is fine but it means you have to be much more creative than people with excess capital.

Obviously, smoking indoors is tough to hide with its residual effects, but with growing you should take special note of covered windows, excessive electricity use, lots of traffic to/from the unit, lots of warmth rising off the unit (if you're in a colder area where you can notice), etc. 

Great book by the way J, we feel we are ready to go and are in the final stages of locking down some private funding.

When we purchase a 120K property here, it will received full gut (studs out as you say) and when Humpy-Dumpty gets put together again, it will be with modern insulation levels, air sealing, Energy Star (tier II or III) Windows and Doors, LED lighting,    Since we are buy-n-hold types, if we sacrifice anything  due to budget constraints it will be trim level - something we can easily change later.We are at the painting stage of a full-gut, deep energy retrofit of a 1100 ft^2, 2-story attached unit {fire coded common wall} and are heating the entire unit with one 2000W electric baseboard at the moment (heat pump will not be commissioned until trim is complete).

The target profit was $30k making my max purchase price $99,620 (with the additional costs I included - staging costs @ $3k and hard money financing cost @ $11k). 

@Robert Delgado I am now a newbie (still in the research stage) from southern DE as well. 

I have been using this strategy for the last year and I'm still at the stage where I'm building up my cash value.  

Year 7 of gains...really, some adjustment is necessary to clean out excess Greed.

So your insurance company has $6,000 and it takes some of that money and buys "reinsurance" against excessive loss.