The only thing that would concern me would the time table; would the city give me time to make repairs prior to enforcing the fines, calling me in to herring etc...Thank you in advance

@Rob BelandFantastic points, and creating a relationship with my local lender was a priority prior to the acquisition of my first two rental townhomes (as well as working with them now on my third rental property currently under contract).  

Utilities are tenant cost and you want proof of utilities in tenant name prior to handing over keys, no exceptions.

"Pre-foreclosure" really only means "prior to the auction sale", not "pre-filing".That said, if there's still a hard-copy newspaper in your target area, check the legal notices, or try their on-line news website if it does not require a subscription.

Getting a loan prior is not going to be an easy task. 

Prior to this year I had always been hesitant to  delve into the world of credit and my mindset was, If I don't have the money for it why charge it and if I do have the money for it then I don't need to charge it.  

I had a poor experience w/ Hubzu prior and now run from it whenever possible.

Basically it is for a home that the (adult) children of the owner are looking to have major updates made to it prior to listing it. 

The title transfer or quit claim wouldn't send a red flag to the lender, but changing the insurance policy will as they are sent any policy changes.

Prior to purchase 2 years ago, I had determined that a reasonable rent was $700-850, with the caveat that these are a bit hard to estimate as 3-bedroom units in a 2-bedroom market, with the units a bit more upscale that typical in the neighborhood.