I will run this through my CPA, but any input from other investors in a similar situation will be greatly appreciated. 

Brace yourselves for the next level of financial wizardry: condo conversion.

I saw there was a new House Bill that came through last year (2023), and added a new subsection to RCW 59.18.280 which does mention RCW 59.18.260 about the checklist requirement for the security deposit:(4) The requirements with respect to checklists and documentation that are set forth in RCW59.18.260 and this section do not apply to situations in which part or all of a security deposit is withheld by the landlord for reasons unrelated to damages to the premises, fixtures, equipment, appliances, and furnishings, such as for rent or other charges owing.This is the new "exception" (per the title of the RCW59.18.280).

If I were you, I would stick to the better situated markets and if the flip model is not working, focus on different strategies until you can make it work with necessary margin (especially on your first project where there will be a learning curve).

My situation is this:  I am due to inherit some crop land soon and would like to get deeper into residential rentals rather than cash-renting the land. 

It’s all about creating win-win situations!

Conveniently situated between two major interstates, I-64 and I-71, accessibility to both is convenient.

I have been wanting a 2nd property for many years but I didnt feel financially comfortable with the idea of buying a 2nd one until now which is my early 30s!

This is concerning because I will likely relive this situation over and over again because of the neighbor.

And interestingly, in any other situation one would be wary of the condition of the property...I guess back to your OP..