If they are a drug dealer or committing crimes on the property, it could risk the safety of other tenants or security of the property. 

You might lose out on the safety and appreciation of Austin, but you'll have something that cashflows from day one.

When a lender offers a no MI program, they're taking on this risk/potential costs, with no safety net. 

We thought of asking for $75–100k up front as a safety if it falls through a year from now.

It is for your safety and others.

With that being said, you will have to be patient no matter where you move since inventory is at an all time low in most markets.

the outbuilding is rotting, the porch on the house is a safety issue because of how old it is and the nails are all coming out.

Or if I should be more patient until I find a better deal.Property # 1 - Duplex - 2 units x 3 beds  - Cost $155k Deposit 20%Rent:Unit 1: $750.

To me that shows they are considering the safety of others and one better, are not so sick they can't even make a phone call.

I'm not going to get aggressive on deal flow (I'm a bit conservative of an investor) I'll use my cash as a safety net just in case and if I'm able to get a deal fully refinanced to complete BRRR the cash flow should be more than enough to weather a drop in rental rates if that were to happen.