I was never on that mortgage though and it never showed up on my credit report.  

Underwriting is typically in a far off place, and I hear over and over from realtors, that the bank drops the ball at the last minute.

Include a copy of the inspection report noting the active infestation and showing any damage.

The primary typical Team members are Attornies, real estate Agents, COA's (or accountants), Inspectors, General Contractors, and Handymen.  

These investments are typically more for the stable income they provide.

The Irvine/Newport markets typically withstand drawdowns very well, much better than other cities.

Typically Portfolio Lenders have a little bit more relaxed guidelines and care more about the feasibility of the project and potential rent assignments than the borrower.

I think the credit reporting agencies are also in this data mining, over 30, 60, 90 day lates, and yes, state specific as well. 

I suppose a "dealer" would be charged normal tax rates according to the typical income brackets correct?

It might be a good way to start out without spending a lot of money or doing any work. https://www.meetup.com/dallasreig/I have since decided to focus on multi-family, where the typical passive investment starts around $50,000.