@Frank GeigerYea, there were also a lot of smaller things like the wood around every single window was completely rotten... and some stuff that is workable but a bit concerning like the main beam holding up half the house was built on two rocks just inches from the dirt in the crawl space... hasn’t been destroyed by termites yet, but looked like a set up for a disaster!

A little move in basket with some of the following :  assorted felt furniture protectors for the wood floor, a sponge, cleaner for a glass top stove if there is one, a small bottle of hand soap,  a couple of packets of dishwasher detergent, maybe a dishtowel, and a roll of paper towels,  windex or such. 

I need recommendations of a solid online bookkeeper / CPA to organize my quickbooks. 

@Ross Denman Everything in your post above is solid GOLD.

Since they are paying market rents and the current lease is solid I would continue on month to month until you live near them for a little while and see if they are a fit. - make sure at closing or in advance of closing you obtain all of their contact info as well as any keys the current owner has for the occupied unit. - Even if you get a copy of the lease for the occupied unit make sure you have the sellers sign an assignment of lease doc and the tenants sign an estoppel agreement.

Agreed with @Anthony that you shouldn't focus on the crash (because we know its inevitable) but rather focus on acquiring properties that are solid cash-flowing assets that can weather the storm of a crash and still bring in income.

Bring on a solid CPA and attorney as external partners and let them advise you and proactively plan around potential obstacles like this.Don't get bogged down in the details initially (analysis paralysis).

My theory is that they really don't have a solid grasp on the proper way to do it, i.e. handshake deals, improper tenant screening, etc.

This migration is causing compression throughout secondary and tertiary markets as well, which is driving smaller investors out of the game.As I see it, we still have a solid 2 or 3 years before we see any significant corrections in B- and C class assets.

- Solid Tenant, 1 year lease.