That led me to investigate 1031s, and in the fine print it is a mess.

If, and it's a big if, markets turn SFH investors will be hardest hit.Assuming multi is your intended path I would begin the investigation and definatly unload the  two and do the 1031 into a multi.If you have a plan you should follow it.

In the mean time I got a call from the police dept saying that my tenant is being investigated for selling drugs and weapons and my cooperation would be helpful.

If you have to investigate each time or direct them to do it "right", you are taking the wrong approach.

From my preliminary estimates I believe it would have an ARV well into the 400ks and probably needs about 20k in repairs and we are picking it up for 300k.

This gets scanned and saved to their file - when it comes to move out time, I schedule a preliminary walk through and go over the same signed checklist with regards to what is expected for move-out (returning the unit in the same condition as it was delivered at move-in).

Is there another tool I should investigate?

Obviously, I immediately suspected scam, and when I called, I was greeted by a guy claiming to be from the "Federal Investigation Department."

Ya know in the good ole days I would get preliminary hud 2 weeks in advance.. so I knew how much I needed to close.. now a days your lucky to get a hud the day of closing.. and then its rush rush.. if we get prelim huds we can just send in an extra 500 or so.. then you can cut a check back send it in the mail etc.and in these states were the sellers expect a check at closing they simply need to be retrained.. we don't do that out here.. no seller gets a check at the closing table its always next day..

I think it's important to not only investigate the home but check out the entire community.