ZB insits that I post a bond for the work I am doing to the sidewalks and driveway.

When I spoke with the gentleman with the township he informed me that the owner had to place a $10,000 bond down to pull the permits to keep the township from demolishing the structure and to complete the repairs.

Thinking through things, we thought we'd cut our rehap teeth with a small SF before tackling a larger MF.  

Stocks vs Bonds, Cash vs Gold, Energy Stocks vs Retail Stocks ad nauseam.So to get back to streams of income it doesn't make sense if you have 5 houses in one city as 5 separate income streams because what happens if there is an earthquake or it was in Detroit?  

I'd say look at demographics (change in population, employment, etc.) in those areas and, importantly, drive through them yourself, to see what you like and what's convenient for you.Also as I've recommended recently in other threads, be sure to check out the finances of any city/town you're planning to buy in, including current and historical changes in municipal bond ratings (Moody's, Fitch, etc.).

I would like to find something easy to cut my teeth on.

The only thing more passive than what you have now would be selling them and buying into passive securities like stocks, bonds, REITs, private placements, syndications, etc., but then you are likely paying taxes (unless it is a DST, TICK, or some other security designed to avoid taxes) and definitely giving up control.

If you do this yourself you simply sell stock/bonds/etc to cover yourself. 

Trying to cut your teeth on a "cheap" sec 8 property in a warzone is more likely to ruin the experience and drain you than it is to get you rich.

General contractor is available in Washington state and is licensed and bonded to do your fix and flips!