Six months later and thousands in legal fees she finally started collecting rent.Now, you might say those were bad luck or lack of due diligence.

I can't imagine a landlord and tenant to sit there with a large flood on hand debating who's going to move a couch when 1) tenant's furniture is ruining in the water already and 2) landlord is in violation of city code for renting out a basement they knew leaked.Is the landlord seriously sitting there letting their carpets mold out to avoid moving some furniture around?

RE is not that easy, you're dealing in tens of thousands of dollars, not tens of dollars, all kinds of things happen, the longer you hold a contract the more risk involved.

Now that the Hedge funds have ruined the renter pool in these cheap areas I view the cheap rental zips as toxic.

I feel like I've answered this same question a thousand times.

This is a marathon, you'll be working at thousands of deals eventually, so this is just part of the process.

You can make a lot of money wholesaling but being dishonest will ruin anyone's reputation very quickly in any business. 

Since I just purchased house #2, I am low on funds (only have a couple thousand saved up).

If the contamination spread to neighboring properties, or if there are any water wells anywhere nearby, it could cost hundreds of thousands of dollars to fix - if it even can be fixed.  

I'll reiterate some advice I got a thousand times and wish I would have taken when I started out.