If they report you to HUD it will be a nightmare.In my state some people charge an extra pet deposit in addition to the security deposit.  

The owner was a payee and handled the tenants social security checks (up until this month of August), so the rent was getting paid on time no problem. 

Loan properly secured.

Security deposit and the final month's rent is paid up front for each unit.

That is why bank/institution financing on the property, they require a certain amount of monthly payment to be set a side to pay the property taxes, because they do not want to loose the their security in the property.1 - Deed State in which State sells/auction the property itself & then You own the property to do with what You wish to.The state of Washington is indeed a "Deed State".  

I know this must vary widely, but on average, how much time per week would you need to do a house flip?

For me it varies widely, depending on the rental type.  

He paid $675/month with a $500 security deposit.

I know this must vary widely, but on average, how much time per week would you need to do a house flip?

@Zachary GwinWhile it is unlikely that you will get conventional financing through a bank, you may be able to secure some hard money, if the deal is good enough.