Avoid anyone with sex charges or with anything violent in their criminal records....no matter how long ago they assaulted someone or with drug charges. 

The FHA says that examples of such problems include but are not limited to the following: Missing handrailsCracked or damaged exit doors that are otherwise operableCracked window glassDefective paint surfaces in homes constructed post-1978 (because of lead paint hazards)Minor plumbing leaks (such as dripping faucets)Defective floor finishes or coverings (worn through the finish, badly soiled carpeting)Evidence of previous (non-active) wood-destroying insect/organism damage where there is no evidence of unrepaired structural damageRotten or worn-out counter topsDamaged plaster, sheetrock or other wall and ceiling materials in homes constructed post-1978Poor workmanshipTrip hazards (cracked or partially heaving sidewalks, poorly installed carpeting)Crawl spaces with debris and trashLack of an all-weather driveway surface=================There are many areas, however, where the FHA does require problems to be remedied in order for the sale to close.Electrical and Heating The electrical box should not have any frayed or exposed wires.All habitable rooms must have a functioning heat source (except in a few select cities with mild winters).Roofs and Attics The roofing must keep moisture out.The roofing must be expected to last for at least two more years.The appraiser must inspect the attic for evidence of possible roof problems.The roof cannot have more than three layers of roofing.If the inspection reveals the need for roof repairs and the roof already has three or more layers of roofing, the FHA requires a new roof.Water HeatersThe water heater must meet local building codes and must convey with the property.Hazards and NuisancesA number of conditions fall under this category.

I found this property by searching tax records.

@Shaun Hatton public records show one of his heirs own it.

(Let's say this is your county record) Land:                             253 = 253/550 = 46%Building:                       (550-253) = 297 = 54% So your purchase price is divided base on this proportion =Land:  138 ( 300*46%) Building:  162 (300*54%)So even with county allocation, you do get the depreciable basis. 

I have just learned how to navigate the records lookup page in st.

It you communicate your rental criteria to prospective tenants in advance before accepting an application and application fee (required in Washington State), you would not run into this problem.It's perfectly fine to reject an application or approve it with conditions based on legal rental criteria.You may want to use a standard form, such as an "Adverse Action Notice".Here's some information from the one we use:----------ADVERSE ACTION NOTICEApplicant name ____________Applicant mailing address ___________This notice is to inform you that your application to rent the property located at ______________  has been:[] Rejected[] Approved with conditions:[] Residency requires an increased monthly rent of $_____[] Residency requires increased [] fee or [] deposit of $ _____[] Residency requires last month’s rent[] Residency requires a qualified guarantor[] Other requirementAdverse action on your application was based on one or more of the following:[] Information contained in a consumer credit report *[] The consumer credit report did not contain sufficient information *[] Information received in a criminal record[] Information received in a civil record[] Information received from references[] Information received from previous rental history or reference[] Information received from employment verification[] Inaccurate, false, or misleading statements or missing critical information on the application*If you were rejected based on a consumer credit report, you can request a copy of your credit report for free from the below-checked agency.[] Experian[] Equifax[] TransunionDated this day of ________.Agent/Owner Signature _________

I often will also transfer the property into a land trust prior to moving it into an LLC, as when you establish the Land Trust in a specific way you can actually keep your name from the public record - but that is another discussion entirely.

In addition to @Paul Choate who @Rhett Tullis mentioned, @JJ Gritts organizes a couple things, Deal Makers on the 2nd Monday of the month at the Waterford Hotel and an informal gathering at VZDs on the 2nd Tuesday.

If I wasn't able to find enough deals to keep pushing our limits and growing as an organization then yes, I'd consider looking in a new market with similar returns.