The seller wanted to sue the investor/realtor for assigning the home to someone who ended up causing $15k damage, and the buyer wanted to sue the investor/realtor for the $15k assignment fee they paid about a year before the deal fell apart, even though they failed in their obligation to the seller and trashed the house.Long story short, both the seller and the buyer's attorney's ended up threatening the managing broker of the investor with a lawsuit after they both tried "legally extorting" a collective $30k from the investor/realtor unsuccessfully, and the managing broker started to panic as well, which also had a negative impact on the investor/realtor too.So here's the moral of the story:1.

You can usually fix these issues and these will provide an immediate boost to the property's value.Also, I would say chances are good you can find some motivated sellers in these areas.

In addition, if you can buy a property under market, or with an opportunity to add value (even if it's just paint and landscaping), you then have the ability to give your investing a boost when you either raise the rents because you have a higher class property and/or pull out some equity to invest in another property.  

You really need to think this through, figure out your plan, and decide if you are morally good with lies and deception.

The M-1 rail will provide a great boost to some areas and if you're willing to do a complete rehab, it might pay off.  

And if not what's the proper way to go about it morally and ethically correct?

IF appreciation happened to be 3% instead of 2%, that would actually boost returns 2.5% at that leverage ratio. 

If you find out there's a problem you'll be at least morally obligated to fix or disclose it, neither which will net you another penny.Your plumber works with homeowners more than flippers so the advice, though good, doesn't apply to you.

“It's time to create a tax system which is fair and which asks the wealthy and powerful to start paying their fair share of taxes.”Special breaks and loopholes in the tax code favor wealthy real estate investors like Trump and do nothing to boost the economy.

However, when it comes  to all the red-tape involved with retirement accounts, better safe than sorry is the best motto.So the moral of the story is to ensure that you don't eat up 90% of your IRA funds on a down payment and closing costs.