They can't expect a home built in the 1950's to conform to ALL of the new construction building codes.

However you are paying amounts outside of settlement in the acquisition of real estate that if undisclosed can then be a violation of mortgage, settlement laws and tax code.

Whenever anyone invests outside of their "comfort zone", or their zip code, they really need to get a good handle on it.  

I suggest being more specific as to describing the purpose and scope of operations, saying to do all things customary and then doing what you think may be customary can venture off into other tax code classifications of business, such as lending, and doing too much of another activity may put you in a different light and acting outside the scope of the primary mission.  

To become a member, you must pledge to a strict Code of Ethics and Standards of Practice. 7.

No pealing paint gfci per code windows no leaks in roof etc. 

Also, encumbrances that come from code violations, water/sewer bills, or any other special assessment will go along with the property and does not get wiped out from a tax foreclosure. 

Do I just choose random streets all over town, or search popular last names, or just choose a particular zip code and stay within it until I get a good amount?

And while you cannot 1031 into your next primary residence immediately, there are provisions in the tax code to later convert a 1031 investment property into your new primary residence. 

The SIC code, the history of purchase etc.