That is up to the investor's discretion.Having set up thousands of these and carrying out many conversations of this nature with investors and lenders I ensure you that it works.

(C) All state agencies shall take reasonable measures to ensure that no person or private entity obtains or distributes personal information obtained from a public record for commercial solicitation.

Your best bet is to get 3 quotes and to also let the contractors know your are getting quotes to ensure a good price. 

As a white kid from the suburbs, I realize that I will be in very unfamiliar turf as I begin my career as a landlord.So, other than buying a gun that I carry at all times, never going to the properties at night, and screening tenants beforehand to make sure they don't have serious criminal records, what else can I do to ensure that I stay safe while managing these types of properties in bad neighborhoods?

Note back to #3, always have exit strategies to handle a variety of situations as they arise.I always like to keep the mindset that the money is made when you buy the property so always track your numbers closely to ensure it pens out when you buy, not a few years down the road based on a gamble.

Other than requiring a minimum credit score of 700 for anyone without Section 8 vouchers, what are other legal ways to ensure that all of my tenants are on Section 8?

Also it’s important to evaluate the general health of the homeowners association to ensure they have proper reserves for capital expenditures etc and you won’t be hit with special assessments. 

Yes, sub-2's are okay, but obviously you don't want to do this on an underwater asset and if you do a sub-2 you need to ensure you do it properly to protect yourself and borrower as these transactions are very sensitive.

The process of supplementing is how to ensure that the other things you mentioned (additional layers, drip edge, code items, etc.) are included in the scope review.

For example, depreciation is a noncash expense that reduces your net taxable rental income and could possibly result in a net tax loss, effectively making the cash flow "tax-free".As mentioned by others above, you should speak with a CPA to ensure you are maximizing tax deductions and keeping most, if not all, of that cash flow in your pocket.