Here are my thoughts on the properties you are inquiring about and college rentals in general:Ralland: these are in a less desirable neighborhood and @Dylan Vargas is right, someone would need to come in and purcahse and renovate the entire street for these to hold much value. 

Though you won't be able to get another FHA loan down the street, you can only have one unless you change jobs & location because of it, I believe.

Last night I looked at a huge home in East Colfax on Poplar street that started a few months back asking 600k and now is back on the market for 499.

So 123 Apple Valley Road (the one you just sold), buys their 1031 as 789 main street LLC (the only member is 122 Apple Valley Road and mainstreet LLC does not file a tax return).  123 LLC would also buy to complete the 1031, 654 Oyster Ave(another disregarded LLC where 123 is the only member and Oyster does not file it's own tax return).This will still be a little awkward for you as 123 LLC (the S corp) owns 789 LLC and 654 LLC. 

However, certain types of crime, such as burglary, assault, arson, sex offenses and drug dealing convictions will be more relevant than traffic offenses, and older convictions are typically less relevant than newer ones.Avoid the Small and SpentIt is illegal to refuse to rent to someone because of past drug use, though you can consider a history of drug manufacture and dealing.

I suspect drug activity in one of my apartments and would like to know if it is possible to run a drug / chemical test to expose the situation.

Fortunately we own 2 other properties on the street so I know the area well. 

First and foremost, if I borrow from a "hard money lender" who has funds originated from a "Drug Cartel" or an "Organization Sponsored by ISIS" or any other shady resource, how would I know?

So property is mixed use on a busy street with 2 storefronts and 2nd floor with 2 apartments generating about $45,000 net income after all expenses.

Ideally, we would like to start off with a nice quad, off street parking that has a good cash flow, even if the cost is higher.