We are individuals managing our rental ourselves.

Does anybody know if it is possible to buy an individual non-performing FHA note from Quicken Loans?

This community is a great place to learn and has many like-minded individuals who have a wealth of knowledge from all walks of Real Estate.Investing within Seattle City limits can be challenging, for the reasons you've mentioned in your post. 

That being, will you reacquire the debt again through poor financial practices?

Searching for financial freedom i read "Rich Dad Poor Dad" by Robert Kiyosaki  and then stumbled upon investing in real estate  by watching a video on youtube.com by the "bearded one" (Brandon Turner.)

Below market rents, poor management, 83% occupancy, good location.How did you find this deal and how did you negotiate it?

Well most of the fears listed here so far would be a result of poor due diligence and lack of precautions when funding the deal.

I guess it all depends on the individual and the property you are insuring. 

No, however it's easier for tax reporting if it's going to be used for 100% business purposes.If mixed use, generally it's better to keep in the name of the individual. 

So Philly is a city composed of individual micro markets that vary from neighborhood to neighborhood.