Like it's big sister, Seattle, Bremerton struggles with some homelessness, drug use, etc.

It depends on who the buyer is, finance to a developer  or another  real  estate operator and you'll have an exempt loan, do the same financing to Mary and you'll have a residential loan.One last word of caution, "investors" or "operators" are "dealers" they are not Harry Homeowner, the exemptions for Harry aren't the same for dealers.

Also check some broker-dealer sites such as dalmorefg.com who brokers the majority of regulation.

It’s like a drug or a coffee fix.

Also, if I take ownership and sell right away, don't I become a "dealer" and then would face larger tax penalties?

Cigarettes are a drug plain and simple.One of my brothers smoked like a chimney and had a stroke.

But as a none smoker and none drug user, how have you dealt with renters who are smokers?.  

As long as the loan you have isn't an FHA loan, I don't believe it is a dealer killer.

And primary dealers are sucking up every Treasury they can find even at less than 150bps of yield (this is hoarding liquidity). 

Secondly, your success largely depends on the team that you recruit and how well you manage them.I have a very thorough recruitment process which includes a video interview, running a paid background check on the individual, having them do a drug test before they’re hired and having them complete a DISC assessment.The employment contracts they sign are extremely thorough and address every possible problem which may arise.