@Chris K.I am in the same boat as you with respect to needing high-depreciable properties (RE Professional, cost seg, 100% bonus depreciation year 1 all equal highly reduced taxable income)

This reduced my taxable w2 pretty sure. 

If you can go owner occupied instead of renting something I think your risk is way reduced. 

I imagine that the sell price would be greatly reduced with the home in its current state, but are there any issues with selling a home with damage and mold even if we told all of the issues we are aware of to potential buyers?

Finance: Review your books and reduce as much expenses as possible and start stacking away money for your purchase. 

Ask for their previous rental history and follow up with the other landlords to reduce the risk.

Excellent ideas here, @Lucas Carl  I use a similar strategy for my LTRs in order to reduce the impending stress caused by tenants with the wrong mentality.Reading your post brought to mind a question I've never considered before:  are vacation rentals subject to Fair Housing Laws in the same way that LTRs are?  

You can deed the property to your entity, and it is a legal transfer irrespective if you record the deed; however, you will want to record to prevent personal liens from attaching to the property. 

For tenants who became unemployed and hours cut I reduced their rent.

Staying there for more than 2 weeks is enough to trigger it; as it is intended to prevent additional burden on the systems (septic, for example) and utilities.