No way the city could conduct/approve that number of rental properties for section 8 in a short given time.  

But sure, if I was ever desperate enough to need to conduct business this way, I'd certainly check on my Title Company's acceptable lingo, before employing a profiteering Transactional Lender!...

Possibly using a professional third party vendor for the pre-inspection is a great idea, give a copy to the owner and tenantExcessive holes in wallsBroken tiles or fixtures in the propertyPlumbing backupsRepainting where a tenant has repainted from the original color Tears, holes, stains or burn marks in carpetsMissing or damaged blindsBroken windows and window screensBroken doors and locksBroken or damaged appliances Excessively DirtyPest control if you see Bugs and or fleasJunk or trash left behindPast Due rentFees incurred from fines from the association due to the tenants conduct or lack thereof Water damage to hardwood floorsMissing outlet coversRemotes for garage or gate if not returnedRekey of locks if tenants did not return the keysUnpaid utilities, as long as they were part of the lease agreement Undoing a tenant alterationThis is a sample of things that are usually considered to be normal wear-and-tear and should not be deducted from a security deposit:Slab or plumbing leakNormal rug wear.

I don't work right now, and I've never conducted a flip.

However, since you asked I will give you an answer.I use the 1% and 50% rules as screening tools when conducting initial evaluations of property data.  

Conduct additional research on the strategy as well.* Always be Honest, Reasonable, and Fair.

Jeff, if you included in your business model that you guaranteed market rents to the landlords and handled the maintenance, repairs, covered costs for vacancies, conducted tenant screening and placement, etc (assuming your a licensed realtor/property manger), then you're fitting the model of a well developed turn-key provider. 

What kind of work do you guys do and where do you usually conduct business? 

An independent apparaisal was conducted in 2013 that valued the property at $86.5k. 

How are you conducting your search?