I do not manage there as it isn't worth it and I don't want to have to have a gun on me to feel safe (the business is hard enough).Happy to have a phone call if you want. 

@Marcy Moyer is correct there is a safe harbor from the IRS that says 2 years if a couple of other conditions are met. 

If I shoot for a 12-15% cash on cash return (using the four square method), is that generally a pretty safe bet?

In fact, I seem to remember there being a big fight on WSU campus about the weapon policy on campus.

I want to make them safe and livable, not perfect.Thanks!

Then, borrower (family, friend or other wise) gets an attorney and claims you violated RESPA, TILA, DF, SAFE, Usury and whatever else they can throw at you, then you are in deep poop.99% of the time the issue will not come up. 

We've gotten no response although the seller's attorney had said they want to avoid litigation.I hired a contractor to make my home safe.

Pilsen, Bridgeport, and Heart of Chicago are all relatively safe areas but there are some aspects of crime around there.  

Performed an eviction with Seattle SWAT (Thanks guys), cop cars, semi-automatic weapons… I thought to myself… am I really here?

I would hold the funds in something fairly safe and wait for the market to stabilize or for the right deal to come along.