Rule of acquisition #74," Knowledge equals profit".You need to do a ton more research and due diligence before you agree to anything.You need a power team to help you make this decision,an experienced realtor who also is a property manager and knows exactly what the property will rent for with some redecorating completed and a great contractor who can point all all the flaws in the property that are going to need replacement or repairs in the next 10 years.Rule of acquisition #3,"Never pay more money for an acquisition than you have to".After you have identified the flaws in the home(needs new roof,plumbing,electrical,appliances,etc) you can offer a better price the property knowing the actual retail value of the property and not just giving him what he wants.No one should ever by an investment property with no hope of steady cash flow after the tenants move in.Complete your due diligence and remember always rule of acquisition #18," An investment without profit is no investment at all".

In spite of it's flaws, it's still my favorite place! 

Whatever analysis you're using in your experience probably had one or two major flaws.

Can't help with your questions about area but if you search the forums you will get some ideas and while you hone in on area you may uncover some other Section 8 issues like finding a PM in the low cost areas you are interested in.

Reasons for claims to be denied include fraud, misinformation, not adhering to the contract conditions (such as securing vacant properties, protecting properties from further damage after a loss, reporting a loss in a timely manner…)So, your usage of the word reasonable in relation to your specific claim is difficult to address without sharing all of the relevant details, but again you can refer to the carrier’s denial, dated May 1, 2014 for the valid and factual reasons your loss was denied.As for us “getting carrier to pay reasonable claims”, we’ve indicated numerous times here, we are the agency, and have no ability to influence a carrier’s decision, as the facts uncovered by their investigation of each claim, stand on their own merit.

We are looking for damages and activities that shouldn't be happening along with uncovering any unauthorized pets or roommates we didn't know about.  

You think you’ve uncovered a unique, all time successful strategy that allow you to ignore fundamental real estate principles.

I did a little digging and uncovered their house was foreclosed on last summer.  

@Adrian Fajardo it does look like there is a need for better grading, but I believe your real problem is a design flaw.

The biggest issue/character flaw I will have to overcome, in order to be successful, is moving from analysis to action.